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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