Spring Ltd acquired 60% of the shares of Peru Ltd In December 2012, the accountant Kate who work in spring ltd. she need preparing the consolidated financial statements for the newly established group. In particular, she is concerned about the calculation of NCI share of equity, particularly in the years after acquisition date. She has heard accountants in other companies talking about step approach, and in particularly how this makes accounting in periods after the acquisitions data very easy as it then necessary to prepare only one step.

?Prepare a report for Kate, describeing the step approach to the calculation of NCI and the effects of the approach in the years after acquisition date.