NCI Net Asset Formula
NCI
can be calculated in two ways i.e. NCI net asset method and NCI fair value
method. In this article we would explain the NCI Net asset method.
|
NCI as proportion of
net assets =Total net asset x NCI %
|
Where
NCI = Non
controlling interest
NCI Net Asset Formula Example
A
company (X) acquire 80% share of another company (Y)
Net
asset of Y = 500,000
What
would be value of NCI?
Solution
NCI as
proportion of net assets =Total net asset x NCI %
=
500,000 x 20%
=100,000
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