Which of the Following Is Not One of the 3

question 18

Multiple Choice

Which of the following is not one of the 3 steps in calculating the NCI's share of the recorded equity of the subsidiary?

• A) Determine NCI share of the changes in equity in the current period.
• B) Determine the NCI share of equity of the subsidiary at acquisition date.
• C) Determine the NCI share of the subsidiary's equity between the date of acquisition and the beginning of the current period.
• D) Determine the NCI share of the subsidiary's equity prior to the date of acquisition.

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Definitions:

Contingent Liability

A potential obligation that may arise depending on the outcome of a future event or set of circumstances.

Deferred Tax Liability

This is a tax obligation due in the future for income already recorded in the financial statements, resulting from temporary differences between accounting and tax treatments.

Goodwill

The excess amount paid over the fair value of net assets acquired in a business combination, representing intangible assets such as brand reputation or customer relationships.

Future Costs

Expenses that are expected to be incurred in the future, which can include operational expenses, capital expenditure, or other financial liabilities.