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Hi,
I have a question relating to the nci measurement at proportionate method. For example, company P acquired 80% share of company S. At the date of acquisition, fair value of assets and liabilities are the same as carrying amount except a ppe has an amount of $5m over its carrying amount.
My question is when we calculating the nci with proportionate method, we will calculate as 20%*fair value of net asset of subsidiary but does the fair value include the $5m adjustment?Hi,
Yes, the fair value would include the $5m adjustment as this is required in increase the net assets of the subsidiary to their fair value.
Thanks
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