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Ask the Tutor ACCA FR

Fair value of NCI proportionate to fair value of net assets?

Jjimbern9y ago
Dear Sir I hope this message finds you well I was wondering whether we should expect such a question as was outlined in Chapter 7 'non controlling interest', specifically Example 5 (approx 26:00)? (referring to the bit about 'Directors valued Non controlling interest at their proportionate share of faule value of D's net Assets') Its not a major issue, but (coming from F3) I was wondering whether such an occurrence is something we should prepare for or if example 5 was just to show us the necessary steps in coming to the desired answer are questions more likely to give us a fair value of NCI at acquisition and expect us to deal with everything else? Apologies if you have already answered this question regards
MikeLittleMikeLittleTutor9y ago#1
To be honest with you, it's most unlikely that the nci will be valued on a proportionate basis. Much more likely will be full, fair value basis OK?
Jjimbern9y ago#2
understood thanks for your help regards
MikeLittleMikeLittleTutor9y ago#3
You're welcome
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