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Dear sir,
I know this is a basic F3 type question, but if a parent acquires a sub as soon as it is incorporated, what would the fair value of NCI be at acquisition?Thanks!
It’s most unlikely that there would be a non-controlling interest in a subsidiary acquired by a parent on the occasion of the subsidiary’s incorporation
A subsidiary on incorporation? The HUGE probability is that the subsidiary is actually being created by the parent – possibly for a specific venture that the parent is about to commence – so non-controlling interests are surely a theoretical concept in that situation
IF (and it’s a BIG IF!) there were such a situation, I can think only that the fair value of the nci would be the nominal value of the shares allocated to the nci
But that’s not going to happen in F3, F7 nor even in P2
You know how, very very occasionally, you can land on an internet page through Google that has only 1 listing? Your question is even more rare than that situation … I have NEVER been asked that question before
OK?
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