Which of the Following Statements Is Correct

question 7

Multiple Choice

Which of the following statements is correct?

• A)The best NCI fair value measure might be the share price of the subsidiary at control date applied to the number of NCI shares but this would depend on any share trading in the subsidiary being liquid and active
• B)If shares in a subsidiary are obtained by an exchange of equity, and there is no active liquid market for the subsidiary's shares, then the best available NCI fair value measure would be the quoted price of the parent's shares, applied to the NCI shares as if they had been obtained by the parent
• C)If the shares in a subsidiary are obtained for cash 'privately', and there is no active liquid market for the subsidiary's shares, the estimate of the control date fair value of NCI becomes very subjective
• D)All of the above statements are correct

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Definitions:

Disparate Subcomponents

Distinct or divergent parts or elements that make up a larger system, often requiring integration for the system to function efficiently.

Decision Complexity

Refers to the level of difficulty in making a choice due to numerous variables, uncertain outcomes, or interconnected factors.

Vague

Describes something that is unclear, ambiguous, or lacking in specific details.

Pooled Decision Making

A process where members of a group or organization share knowledge and resources to make a decision collectively, rather than independently or hierarchically.