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    zhanglei827455's Avatar
    zhanglei827455 Posts: 1, Reputation: 1
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    #1

    Sep 5, 2009, 08:37 PM
    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.
    Musa89's Avatar
    Musa89 Posts: 6, Reputation: 1
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    #2

    Sep 9, 2009, 04:19 AM
    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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