the group has three subsidiaries with material non controlling interests nci informa 611826
Illustrative example of disclosure of non-controlling interests
The group has three subsidiaries with material non-controlling interests (NCI). Information regarding these subsidiaries is as follows:
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20X3 |
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Principal place of |
NCI in |
Profit/(loss) allocated to |
Accumulated |
Dividends paid to NCI |
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Name |
business |
subsidiary |
NCI e000 |
NCI e000 |
in year e000 |
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R Limited |
France |
40% |
200 |
1,300 |
100 |
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S Inc |
USA |
25% |
(50) |
161 |
0 |
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T Limited |
India |
20% |
100 |
590 |
80 |
The NCI of the subsidiary represents the ownership interests. The NCI share of voting rights of S Inc is 22%.
Summarised financial information including goodwill on acquisition and consolidation adjustments but before inter-company eliminations is as follows:
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R Limited |
S Inc |
T Limited |
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E”000 |
e000 |
e000 |
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Cash and cash equivalents |
700 |
900 |
550 |
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Other current assets |
4,300 |
500 |
2,450 |
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Non-current assets excluding goodwill |
1,000 |
500 |
500 |
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Goodwill |
1,000 |
600 |
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7,000 |
2,500 |
3,500 |
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Current liabilities |
2,000 |
500 |
700 |
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Non-current liabilities |
1,000 |
250 |
300 |
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3,000 |
750 |
1,000 |
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Revenue |
2,000 |
500 |
1,000 |
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Profit/(loss) after tax |
500 |
(200) |
500 |
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Total comprehensive income |
530 |
(200) |
470 |
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Operating cash flows |
700 |
(200) |
1,500 |
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Increase/(decrease) in cash and cash equivalents |
200 |
(250) |
500 |
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20X2 |
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Name |
Principal place of business
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NCI in subsidiary |
Profit/Loss allocated to NCI E”000 |
Accumulated NCI E”000 |
Dividends paid to NCI in year E”000 |
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R Limited |
France |
40% |
150 |
1,200 |
50 |
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S Inc |
USA |
22″o |
10 |
211 |
0 |
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T Limited |
India |
20% |
50 |
570 |
100 |
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The NCI of the subsidiary represents the ownership interests. The NCI share of voting rights of S Inc is 20%.
Summarised financial information including goodwill on acquisition and consolidation adjustments but before inter-company eliminations is as follows:
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R Limited e000 |
S Inc e000 |
T Limited e000 |
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Cash and cash equivalents |
500 |
800 |
200 |
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Other current assets |
4,000 |
400 |
3,000 |
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Non-current assets excluding goodwill |
1,000 |
480 |
600 |
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Goodwill |
1,000 |
600 |
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6,500 |
2,280 |
3,650 |
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Current liabilities |
1,500 |
470 |
600 |
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Non-current liabilities |
1,000 |
250 |
200 |
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2,500 |
720 |
800 |
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Revenue |
1,500 |
550 |
1,200 |
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Profit after tax |
375 |
80 |
250 |
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Total comprehensive income |
400 |
80 |
220 |
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Operating cash flows |
800 |
300 |
1,400 |
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Increase in cash and cash equivalents |
200 |
100 |
350 |
Notes:
1. The illustrative example assumes that the disclosure of cash and cash equivalents, operating cash flows and increase in cash and cash equivalents is required to enable users to understand the interest that NCI have in the reporting entity”s cash flows.
2. Goodwill arising on acquisition has been separately disclosed.
3. The illustrative example assumes that non-controlling interests in R Limited and S Inc were measured at the proportionate share of the value of the net identifiable assets acquired and not at acquisition date fair value.
IFRS 12 does not address disclosure of non-controlling interests in the primary statements. IAS 1 requires disclosure of total non-controlling interests within equity in the statement of financial position, profit or loss and total comprehensive income for the period attributable to non-controlling interests and a reconciliation of the opening and closing carrying amount of each component of equity (which would include non-controlling interests) in the statement of changes in equity. [IAS 1.54, 83, 106].