If the non-controlling interest at acquisition is based on the fair value of the subsidiary's identifiable net assets, which consolidation method is being applied?
A) Proportionate consolidation method
B) Parent company method
C) Fair value enterprise method
D) Identifiable net assets method.

Question

Quizplus · Accepted Answer

The identifiable net assets method is the consolidation method where the non-controlling interest is based on the fair value of the subsidiary's identifiable net assets. This method is also known as the acquisition method or the purchase method.

If the Non-Controlling Interest at Acquisition Is Based on the Fair