Why Might the Fair Value of the Non-Controlling Interest in a Subsidiary

question 55

Essay

Why might the fair value of the non-controlling interest in a subsidiary on the date that it is acquired in a business combination not be proportionate to the price per share paid by the parent company to acquire control? How do the IFRS recognize this?

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.

Explanation

A declaration or narration that elucidates by giving additional details or exposing relevant facts or insights.

Pearl Jam

An American rock band formed in 1990 in Seattle, Washington, known for its contributions to the grunge movement.

Explanation

A statement or account that makes something clear by describing it in more detail or revealing relevant facts or ideas.