IFRS 3 give the following options to measure NCI:
1) The proportion of the NCI's net assets (Partial goodwill method)
or
2) The full fair value method (Full goodwill method)
I understand that option 1 is basically the NCI's % of the acquiree's net assets at acquisition date, but what does the full fair value method
in option 2 mean?
Kindly advise sir.
Ask the Tutor ACCA SBR
IFRS 3 Business Combination
7y ago#1For fair value, read market value.
Thanks
Hi,
I am confused with how to compute the increase/decrease in NCI due to disposal/step-acquisition or entities.
Understand that if the group still retains control of the subsidiary after disposal of equity interests, we make equity adjustments to account for any increase/decrease in OCE.
The increase/decrease in NCI is basically made up of any changes in the net assets of the subsi x %. Should I include FV adjustments on land to calculate changes in NCI? If no, why? If yes, why?
In the exam kit, Q1a (ii) seems to take into account of FV adjustments of land in calculating the increase in NCI. Whereas for Q3a, FV adjustments of land is not included in calculating the decrease in NCI. Please advise.
Thank you.
6y ago#3Hi,
It should take account of fair value adjustments, but I cannot comment on the specific exam questions you mention as I do not know which exam they come from.
Thanks
Sign in to reply to this topic.