On 01 January 2018 at acquisition P Ltd acquired 80% interest in S Ltd. S Ltd had a retained earnings that amount to 250 000 on 01 January 2020 since the acquisition, S Ltd had a retained earnings that amounted to 375 560. The financial year ends on 31 December 2020 How much will be Non- Controlling interest on retained earning since the acquisition, at the beginning of the year? ( ceteris paribus) Select one: A. 25112 B. 2512 C. 50000 D. 75000
On 01 January 2018 at acquisition P Ltd acquired 80% interest in S Ltd. S Ltd had a
How much will be Non- Controlling interest on retained earning since the acquisition, at the beginning of the year? ( ceteris paribus)
Select one:
A. 25112
B. 2512
C. 50000
D. 75000
The term acquisition means when a company purchases the majority of the shares of another company. The whole process of purchasing other companies is known as the acquisition. In this, the percentage of the shares purchased is known as the controlling interest. It means the control on the profit of that percentage. On the other hand, the share that is not purchased is known as non-controlling interest means that the purchasing company has no interest. Hence, this is the meaning of acquisition.
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