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:

Cultural Differences

Variations in the practices, values, and norms of behavior among different groups of people.

Facial Expression

The use of facial muscles to convey emotions, thoughts, or reactions.

Display Rules

Sociocultural standards that determine when, where, and how emotions should be expressed.

Method-Acting Technique

An acting technique in which actors try to replicate the emotional conditions under which a character operates, in an effort to create a lifelike performance.