NCI in a Cashflow

NotesObjective Test

NCI in a Cashflow Statement

This Year Last Year
NCI 100 40

So we can see in the SFP extract above that NCI has increased by 60

Total Comprehensive Income
NCI 120

And from the above we can tell that NCI has increased by 120 this year

NCI
Opening 40
Total Income attributable to NCI 120
Closing 100

As you can see - the NCI account doesn't 'balance' - there is a negative balancing figure needed....

NCI
Opening 40
Total Income attributable to NCI 120
Dividends paid to NCI (60)
Closing 100

It is this balancing figure we need to calculate and it is this figure (Dividends paid to NCI) that goes into the Cashflow Statement

Acquired a Sub during the year?

Lets say we also acquired a sub with NA with a fair value of 100

We bought 80% of it

Therefore also NCI should get their 20%

We give them this... as follows

NCI
Opening 40
Acquired a Sub with NCI of 20 20
Total Income attributable to NCI 120
Dividends paid to NCI (80)
Closing 100

Just add it next to the open ing SFP balance and you can see this means the dividend paid to NCI must also have grown.... from 60 to 80

Remember it is the 80 cashflow out we are trying to calculate and which goes into the cashflow statement

NotesObjective Test