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-   -   Fair value method to calculate the amout of NCI (https://www.askmehelpdesk.com/showthread.php?t=393855)

  • Sep 5, 2009, 08:37 PM
    zhanglei827455
    Fair value method to calculate the amout of NCI
    Hi,

    If a parent company owns 40.9% of a subsidiary company's share,How to calculate NCI?

    What are the steps in problem solving?

    If I use Purchase consideration divide by percentage of share,then times 59.1% NCI=NCI

    Is this right?

    Waiting for your help.
  • Sep 9, 2009, 04:19 AM
    Musa89
    That is the proportionate method, you are referring to. The fair value method uses the market value of the market securities issued by the acquired subsidiary which according to IFRS 3 revised is a reasonable approximation to the fair value of the enterprise.

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