Ditinti Limited acquired 80% (and control) of the shares of Chai Limited at 1 March 2016 when the fair value of the netassets of Chai Limited was R250 000. What is the value of the non-controlling interests in Chai Limited? Select one: a. R250 000 b. R200 000 c. R80 000 d. R50 000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Ditinti Limited acquired 80% (and control) of the shares of Chai Limited at 1 March 2016 when the fair value of the netassets of Chai Limited was R250 000. What is the value of the non-controlling interests in Chai Limited?
Select one:
a.
R250 000
b.
R200 000
c.
R80 000
d.
R50 000 

Expert Solution
Step 1

Non-controlling interests:

Non controlling interest is the portion that is not owned by the parent company of a subsidiary company's stock . It is also called the minority interest.  Minority interest is the situation when the shareholding in the subsidiary company is generally less than 50% of outstanding shares.

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