Accounting · IFRS 3 Business Combinations
Under IFRS 3, if a parent entity acquires an 85% equity shareholding in a subsidiary, the non-controlling interest (NCI) at the acquisition date can be measured using which of the following methods?
- 1At the present value of future dividend payments
- 2At the nominal value of shares held by minority shareholders
- 3Either at fair value or at the NCI's proportionate share of the acquiree's identifiable net assets✓
- 4At historical cost only
Correct answer
Either at fair value or at the NCI's proportionate share of the acquiree's identifiable net assets
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