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Hi Mr Chris,
Thanks for your lectures,
Are the fair value of NCI at acquisition and the share capital of NCI at acquisition are different or must be the same,
Thank you for the kind comment, I’m glad that you enjoy the lectures.
What you mention above are two entirely different things. The NCI at acquisition is looking at the value of the percentage ownership the NCI has of the subsidiary. This is measured using the proportionate share method or fair value method.
The share capital of the NCI is the number of equity shares that the subsidiary has in issue, of which the NCI will own their share of this number. It does not value the NCI and is merely the number of shares that are in issue.
Hope that clears it up for you.