After the Introduction of the Entity Method in Canada, Many

question 41

Essay

After the introduction of the entity method in Canada, many companies opted to value the non-controlling interest in subsidiaries based on the fair value of the subsidiary's identifiable net assets at the acquisition date instead of valuing the non-controlling interest at its fair value. That is, they opted to use the parent company extension approach rather than the entity method when preparing consolidated financial statements. What motivation might preparers of consolidated financial statements have that would cause them to have this preference?

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Definitions:

Knowledge Sharing

The exchange of information, skills, or expertise among individuals or organizations to foster learning and innovation.

Learning And Development

The ongoing process of acquiring new knowledge, skills, and competencies to improve one's capabilities, performance, and career prospects, typically supported by educational and professional training programs.

Employee Development

Initiatives taken by an organization to improve the knowledge, skills, and abilities of its employees.

Strategic Business Partner

A role within organizations where departments or individuals support and align their activities with the overall business strategy and goals to drive success.