Reattribution of other comprehensive income upon an increase in ownership interest
A parent holds an 80% interest in a subsidiary that has net assets of ¥4,000. The carrying amount of the 20% non-controlling interest is ¥800, which includes ¥200 that represents the non-controlling interests share of total other comprehensive income of ¥1,000 related to gains on available-for-sale investments. The parent acquires an additional 10% interest in the subsidiary for ¥500, which increases its total interest to 90%.
The parent accounts for the transaction as follows:
|
Y |
Y |
|
|
Non-controlling interest”s share of other comprehensive income (Y1,000 x 10%) |
100 |
|
|
Non-controlling interests (excluding share of other comprehensive income) |
300 |
|
|
Parent”s other reserves |
200 |
|
|
Parent”s share of other comprehensive income (Y1,000 x 10%) |
100 |
|
|
Cash |
500 |