A non- controlling interest arises when:
A)the acquirer does not acquire 100% of the acquiree
B)the acquirer acquires 100% of the acquiree
C)the acquiree does not acquire 100% of the acquirer
D)all of the above

Question

Quizplus · Accepted Answer

A non-controlling interest occurs when the acquirer does not acquire 100% of the acquiree. In this case, the acquirer does not have control over the entirety of the acquiree and must recognize the portion of ownership that is held by the non-controlling interest. Option B is incorrect because if the acquirer acquired 100% of the acquiree, there would be no non-controlling interest. Option C is incorrect as the acquiree cannot acquire the acquirer. Option D is incorrect as only option A is correct.

A Non- Controlling Interest Arises When