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:

Web Server

A computer configured to provide web-based content that is accessed through a web browser.

Escalate

In a support or service context, to transfer a problem or complaint to a higher level of authority or expertise for resolution.

Irate User

A term describing a user who is extremely angry or frustrated, usually with a service or product.

Help Desk

A service providing information and support to computer users, especially within a company.