In Measuring the Noncontrolling Interest Immediately Following the Date of Acquisition

question 116

Multiple Choice

In measuring the noncontrolling interest immediately following the date of acquisition, which of the following would not be indicative of the value attributed to the noncontrolling interest?

• A) Fair value based on stock trades of the acquired company.
• B) Subsidiary cash flows discounted to present value.
• C) Book value of subsidiary net assets.
• D) Projections of residual income.
• E) Consideration transferred by the parent company that implies a total subsidiary value.

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Definitions:

Epidemiological Study

Research investigating the frequency, patterns, and causes of diseases and health conditions in defined populations.

Longitudinal Study

A research design that involves repeated observations of the same variables over short or long periods of time.

Experiment

A systematic activity carried out to test a hypothesis, discover a new fact, or demonstrate known facts.

Epidemiological Studies

Research studies that aim to understand the patterns, causes, and control of diseases in groups of people.