alleryStart learning →Which NCI measurement choice at acquisition gives the 'full goodwill' method?
AProportionate share
BHistorical book value
CFair value measurement
DNominal share value
Answer & Solution
Correct answer: C. Fair value measurement
Measuring NCI at fair value yields full goodwill; the alternative is NCI's proportionate share of identifiable net assets.
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Related questions
Which business combination method has been disallowed under US GAAP since 2001?Goodwill can be recognised only through what?Goodwill in consolidated statements is treated as what type of asset?Acquirer pays Rs 60,000 for 100% of net assets with fair value Rs 40,000. Goodwill equals:A buys 100% of B for Rs 20 lakh. B's identifiable net assets at fair value are Rs 9 lakh. Goodwill arises when the price paid for a company exceeds what?A negative goodwill result on acquisition is recognised as what?Consideration transferred in a business combination is measured at: