a) The additional 20% purchase by RBE results in an increase in the controlling interest held in the subsidiary, DCA.

No further goodwill is calculated on the additional purchase as goodwill is only calculated at the date control was gain in accordance with IFRS 3. However, at the date of additional purchase (1 October 2010) the value of the NCI needs to be established. The proportion sold will be transferred from NCI to parents equity within the SOCIE. The difference between that value and the consideration transferred is included in parents equity as an adjustment to parent equity on acquisition. b) Statement of charges in equity for the year ended 31 December 2010 Attributable to Equity holders of parent $000 Opening balance 3,350 TCI for the year (W1) 1,350 Share issue (2m x $1.30) 2,600 Dividends (200) Adjustment to NCI for 503 Add. Purchase of DCA Shares (W3) Adjustment to parents equity (37) (W3) Balance at the end of the year 7,566 NCI $000 650 150 0 (30) (W2) (503) Total equity $000 4,000 1,500 2,600 (230)

0 267

(37) 7,833

Working 1 NCI share of total comprehensive income of DCA $600,000: NCI at 30% x $600,000 x 9/12 months NCI at 10% x $600,000 x 3/12 months NCI share of TCI

$000

135 15 150

Therefore parent share of TCI of DCA is $600,000 - $150,000 = $450,000 Total TCI attributable to equity holders of Parent is $900,000 + $450,000 = $1,350,000. Working 2 NCI share of dividend paid April 2010 by DCA = 30% x $100,000 = $30,000 Working 3 Value of NCI at 1 October 2010 is $650,000 + $135,000 (W1) - $30,000 (W2) = $755,000.

Therefore the value transferred is $755,000 x 2/3 = $503,333 Adjustment to parents equity Consideration transferred Value on non-controlling interest transferred Adjustment to parent equity $000 540 (503) 37