Under the full goodwill method, the NCI is measured based on:
A) the fair value of the shares that parent owns in the subsidiary.
B) the fair value of the shares that the NCI owns in the subsidiary.
C) the proportionate share of the fair value of the acquiree's identifiable assets and liabilities.
D) the proportionate share of the carrying amount of the acquiree's identifiable assets and liabilities.

Question

Quizplus · Accepted Answer

Under the full goodwill method, the Non-Controlling Interest (NCI) is measured based on the fair value of the shares that the NCI owns in the subsidiary. This approach considers the market value of the subsidiary as a whole to determine the value of the NCI's share.

Under the Full Goodwill Method, the NCI Is Measured Based