Share of non-controlling interests

Learning objectives

• Analyse the attribution of the translation difference to non-controlling interests.L3, L4

Normative references

• IAS 21 §41The exchange differences in para. 39(c) result from (a) translating income and expenses at the exchange rates at the dates of the transactions and assets and liabilities at the closing rate, and (b) translating the opening net assets at a closing rate that differs from the previous closing rate; they are not recognised in profit or loss because the changes in exchange rates have little or no direct effect on present and future cash flows from operations; their cumulative amount is presented in a separate component of equity until disposal of the foreign operation. For a consolidated foreign operation that is not wholly owned, the portion of the cumulative amount attributable to non-controlling interests is allocated to them in the consolidated statement of financial position.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• The Eldrin group consolidates a foreign subsidiary that it holds at 75%. The translation difference for the year is {translation_difference}. Non-controlling interests hold {nci_percentage} of the subsidiary. Calculate the share of the difference allocated to non-controlling interests and the remaining share.L3