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Change in Ownership Without Loss of ControlNCI and APIC (ASC 810)

What do these figures come to once the work is shown?

NCI adjustment and the difference to additional paid-in capital when a parent buys or sells subsidiary shares and keeps control.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Adjustment to additional paid-in capital
$600,000
Difference between consideration and NCI change
Change in NCI carrying amount
$2,000,000
Gain in net income
$0
None: equity transaction
Drawn to one scale
Adjustment to additional paid-in capital$600,000
Change in NCI carrying amount$2,000,000
Gain in net income$0
All results
MeasureResult
Adjustment to additional paid-in capital$600,000
Change in NCI carrying amount$2,000,000
Gain in net income
None: equity transaction
$0
Control checkMajority voting interest retained
How this was worked out
Work shownrecomputed as you type
NCI change = net assets x (ownership before - ownership after)
APIC = consideration received (or - paid) - NCI change

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • NCI change = net assets x (ownership before - ownership after)
  • APIC = consideration received (or - paid) - NCI change

How it works

ASC 810-10-45-23 accounts for changes in a parent's ownership while it keeps control as equity transactions. No gain or loss is recognized in net income. The NCI carrying amount is adjusted for the change in its interest, and the difference from the consideration goes to equity attributable to the parent.

ASU 2010-02 set the scope in ASC 810-10-45-21A: it covers subsidiaries that are businesses or nonprofit activities, with exceptions such as conveyances of oil and gas mineral rights.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Is accumulated OCI reallocated?

Yes. ASC 810-10-45-24 reallocates the carrying amount of accumulated OCI between parent and NCI.

What if control is lost?

Then the parent deconsolidates and recognizes a gain or loss under ASC 810-10-40.

Should goodwill be in net assets?

Use the subsidiary net assets in consolidation, including goodwill attributed to the subsidiary.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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