Which of the Following Statements Is Incorrect

question 6

Multiple Choice

Which of the following statements is incorrect?

• A) Under the partial goodwill method, the NCI is measured at fair value at acquisition date.
• B) Under the partial goodwill method, the NCI is measured as a proportion of the net fair value of the subsidiary's identifiable assets and liabilities at acquisition date.
• C) Extra columns are added to the consolidation worksheet to divide the group's equity into the NCI share and the parent's share.
• D) The adjustments for intragroup transactions are the same whether the subsidiary is wholly owned or whether there is an NCI in the subsidiary.

---

Definitions:

Ultimate Parent

The highest level or top company in a corporate structure, which holds control over all subsidiary companies within the group.

Corporate Groups

A collection of parent and subsidiary companies that function as a single economic entity through a common source of control.

Indirect Ownership Interests

Ownership in a company that is not held directly by the owner but through a chain of intermediary entities.