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Feb 26, 2009 at 08:56 PM

Minority interest - functional knowledge & grouping for Consolidation

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Hi Experts,

Scenario

A > holds 100% in B, 10% in C, 5% in D

B > holds 90% in C, 95% in D, 100 % in E, 1 % in F

E > holds 99 % in F

No shares are owned by parties outside the group.

1) Minority Interest

In case like this will MI be accounted for?

Can we say B's holding of 1% in equity of F as minority holding?

Similarly A's holding of 5 % in D; 10% in C?

2) Consolidation Groups - in this scenario will be

CG 1 - E & F (E - Parent, Purchase Method)

CG 2 - B, C, D, F & CG1 (B - Parent, Purchase Method)

CG 3 - A, C, D & CG2 (A - Parent, Purchase Method)

Many Thanks!

Kumar