1.Statutory profit and total comprehensive income
The Qantas report (2015) released that $3M NCI contributes to the total statutory profit for the year. It represents that around 0.5% profits are attributed to the NCI. And there is no NCI contribution during year 2014. Therefore, most of the profit are generated by Qantas and the NCI portion of the group is not material to the groups’ revenue performance. In Qantas consolidation statement of comprehensive income (2015), NCI only contributes to 0.7% of total comprehensive income by making $4M income. In addition, there is no NCI contribution during year 2014 as well.
Equity in balance sheet and divide performance related to NCI
Qantas has decided to increase the portion of interest held in subsidiaries or they bought new subsidiaries. Under the equity statement, dividend paid to NCI is $4M an acquisition of NCI is $1M. It shows the same situation of consolidation cash flow statement. Qantas did not pay …show more content…
It represents that Qantas’ associate or join venture has a loss during FY2015. And Qantas is entitled to a percentage which is normally greater than 20% and less than 50% share of this loss. From the financial report (2015) consolidation income statement and note 14, Qantas share of this loss is $40M totally and less than the loss at FY2014 (66). The entry passed in the records of Qantas at current report year recognizes as loss a share of the investees’ loss and decrease the investment in associate or join venture (Loftus 2015).
From the report, the general losses from associates or joint ventures are disclosed, while users cannot know where the loss generate and which company makes loss. The details of loss also missing. Identify which segment makes loss can generate the controllable of loss. For example, some loss could be controlled and that means there is management problem within the company.
The Qantas report (2015) released that $3M NCI contributes to the total statutory profit for the year. It represents that around 0.5% profits are attributed to the NCI. And there is no NCI contribution during year 2014. Therefore, most of the profit are generated by Qantas and the NCI portion of the group is not material to the groups’ revenue performance. In Qantas consolidation statement of comprehensive income (2015), NCI only contributes to 0.7% of total comprehensive income by making $4M income. In addition, there is no NCI contribution during year 2014 as well.
Equity in balance sheet and divide performance related to NCI
Qantas has decided to increase the portion of interest held in subsidiaries or they bought new subsidiaries. Under the equity statement, dividend paid to NCI is $4M an acquisition of NCI is $1M. It shows the same situation of consolidation cash flow statement. Qantas did not pay …show more content…
It represents that Qantas’ associate or join venture has a loss during FY2015. And Qantas is entitled to a percentage which is normally greater than 20% and less than 50% share of this loss. From the financial report (2015) consolidation income statement and note 14, Qantas share of this loss is $40M totally and less than the loss at FY2014 (66). The entry passed in the records of Qantas at current report year recognizes as loss a share of the investees’ loss and decrease the investment in associate or join venture (Loftus 2015).
From the report, the general losses from associates or joint ventures are disclosed, while users cannot know where the loss generate and which company makes loss. The details of loss also missing. Identify which segment makes loss can generate the controllable of loss. For example, some loss could be controlled and that means there is management problem within the company.