If the Non-Controlling Interest at Acquisition Is Based on the Fair

question 18

Multiple Choice

If the non-controlling interest at acquisition is based on the fair value of the subsidiary's identifiable net assets, which consolidation theory is being applied?

• A) The proprietary theory.
• B) The parent company theory.
• C) The entity theory.
• D)The parent company extension theory.

---

Definitions:

Participative Decision Making

A decision-making process where all members of the group are involved to reach a consensus or agreement.

Act Autonomously

The capacity or action of making one's own decisions independently, often associated with self-direction and personal responsibility.

Participative Decision Making

A collaborative decision-making process in which members of a group or organization share in making decisions that affect them, aiming to increase commitment and improve decision outcomes.

Decision-making Process

The series of steps or stages involved in choosing among alternatives to determine the best course of action.