CAF-6 · Chapter 9 · Question 9 of 15
IFRS 3 allows NCI at the date of acquisition to be measured at either Fair Value (Full Goodwill) or:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Proportionate share of the subsidiary's identifiable net assets.
Explanation
IFRS 3 provides an option to measure NCI at acquisition either at fair value or at NCI's proportionate share of the subsidiary's identifiable net assets.
More Consolidation (IFRS 10, IFRS 3) MCQs
- Q11How are 'Intra-group balances' (like a loan from parent to subsidiary) treated on consolidation?
- Q12Consolidated Retained Earnings include 100% of the Parent's retained earnings plus:
- Q13Which of the following is NOT an 'Identifiable' asset for IFRS 3 purposes?
- Q14'Acquisition-related costs' (like legal and accounting fees for the merger) should be:
- Q15In a Consolidated Statement of Profit or Loss, the 'Profit for the year' is: