Under the partial goodwill method, the NCI is measured as a proportion of the _______ of the identifiable net assets of the subsidiary at the acquisition date.
A)Net fair value
B)Net book value
C)Carrying value
D)Future value.

Question

Quizplus · Accepted Answer

The partial goodwill method measures the non-controlling interest (NCI) as a proportion of the net fair value of the identifiable net assets of the subsidiary at the acquisition date. This approach contrasts with the full goodwill method, where goodwill is calculated for both the acquiring firm's and the non-controlling interest's share.

Under the Partial Goodwill Method, the NCI Is Measured as a Proportion