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QuestionsCategory: Financials QuadrantNon controlling interest
Wan Kok kin asked 2 years ago

I’m looking at PENTA 2019 financial report.
Why a non-controlling interest that holds 26.7% shares of equity can get 36.7 % shares of earning?
What number should I pay attention to exclude the value of non-controlling interest when I do the valuation part? (to not overstate the valuation)

2 Answers
Victor Chng answered 2 years ago

Hi Kok Kin,
 
Why a non-controlling interest that holds 26.7% shares of equity can get 36.7 % shares of earning? – Can you point me to the page
 
When collecting net income alway use the figure from profit attributed to owner of the company. Non-controlling interest should always be excluded.

Wan Kok kin replied 2 years ago

pages 61 and 62. Share of equity =159.3/595.9 , Shares of earning=48.1/131.1.
How about the cash flow, should I exclude it also?

Victor Chng answered 2 years ago

Hi Kok Kin,
 
The amount should not be using 159.3/595.9. It should be based on the net asset of the subsidiary that they have interest in. You can find the figure in page 97 of the annual report by taking 159.3/438.9 to get 36.3%.