IFRS Permits Several Methods to Be Used to Determine the Fair

question 13

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 may be valued at the fair value of the subsidiary's identifiable net assets.

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Definitions:

Workplace Rage

Extreme anger or aggression exhibited by employees within the workplace, often as a result of stress, frustration, or perceived injustice.

Psychological Contract

An unwritten agreement that sets out mutual expectations and obligations between employers and employees beyond the formal contract of employment.

Employment Relationship

The formal and informal relationship between an employer and an employee, defined by rights, responsibilities, and obligations.

Psychological Contract

An implicit agreement between an employee and employer that outlines the informal obligations and expectations of their professional relationship.