IFRS Permits Several Methods to Be Used to Determine the Fair

question 42

Multiple Choice

IFRS permits several methods to be used to determine the fair value of the non-controlling interest in a subsidiary at the acquisition date. Which of the following is NOT an appropriate method to determine the fair value of the non-controlling interest (NCI) ?

• A) The NCI may be valued at the market value of the subsidiary's shares.
• B) The NCI may be valued by determining the fair value of the business by means of an independent business valuation and then deducting the fair value of the controlling interest.
• C) The NCI may be valued proportionately to the price paid by the parent for its controlling interest.
• D) The NCI can't be valued objectively, so a nominal value of one dollar is assigned to the NCI.

---

Definitions:

Specific Goals

Objectives that are clearly defined, measurable, achievable, relevant, and time-bound, aimed at guiding actions and motivating individuals or teams towards achievement.

Difficult Goals

Objectives that are challenging to achieve due to their complexity, high standards, or the significant effort required to accomplish them.

Weekly Quota

A designated target or minimum amount of work, sales, or similar measure that must be achieved in a week.

Valence

The perceived value or desirability of a reward or outcome, influencing an individual's motivation.