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I need your help!
a parent has acquired two subsidiaries. at the date of acquisition the parent valued NCI of one subsidiary at the proportionate share of the fair value of the acquiee’s assets acquired and liabilities assumed but NCI of another one, a quoted company, at fair value.
please advise whether using different methods of NCI is allowed, if not which one should be used.
Regards
catWe will use same/different methods to value NCI based on examainer requirement.
With best regards.If the question specifies that one sub using FV, the other sub using proportionate of Net Asset, then just follow the requirements. It is totally fine!
Just remember that if NCI at FV then GW is in full and any impairment loss need to be shared between Parent and NCI.
If NCI at proportionate of net asset, any impairment loss is attributable to parent ONLY.
Hi,
You will have to calculate G/W Depending on the question’s requirements. As Ruby rightly said.
Be very careful how you treat G/W impaired.
– If NCI is at FV, G/W impaired is share between the parent and the NCI;
– If NCI is measured using the proportionate method, then G/W impaired is ONLY to the PARENT NONE to the NCI.
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