Where a subsidiary is partly owned by a parent and an NCI, both the BCVR entries and the pre-acquisition entries are adjusted to reflect only the parent's share of the subsidiary's equity balances.

Question

Quizplus · Accepted Answer

The BCVR (Book Value to Consideration Received) entries and the pre-acquisition entries reflect the total change in the subsidiary's equity balances, not just the parent's share. The Non-Controlling Interest (NCI) share is also considered in these adjustments to present a complete picture of the acquisition's impact on equity.

Where a Subsidiary Is Partly Owned by a Parent and an NCI