P2 (Int) - Groups Question

[gdkapoel]

a couple of questions from groups:


1. In the case of a sub-subsidiary in the calculation of the goodwill we deduct the indirect holding adjustment from the consideration. So far so good, I understand why this is done.

But then we go on to deduct this indirect holding adjustment from the Minority Interest. What is the logic behind this?



2. How do we treat Trade Invesments (holding <20%) in the Balance Sheet?


Thanks!

[Vandana]

Answering 2 above - this is treated as a normal investment and therefore held at fair value at each balance sheet date

[Vandana]

with regards to 1)

you are right that you deduct the indirect holding in net assets from the consideration to calculate goodwill

I am not sure what you mean by the 2nd point - can you give me an example or link to a question and I will get back to you?

[gdkapoel]

Thank you very much, I appreciate it a lot

I dont have a link to a question unfortunately for that point. What I mean is that the indirect holding that is deducted from the consideration to calculate the group's goodwill is also being charged to the Minority Interest. I want to know why is it charged on the MI?