In Measuring Non-Controlling Interest at the Date of Acquisition, Which

question 5

Multiple Choice

In measuring non-controlling interest at the date of acquisition, which of the following would not be indicative of the value attributed to the non-controlling interest?

• A) Fair value based on stock trades of the acquired company.
• B) Subsidiary cash flows discounted to present value.
• C) Book value of subsidiary net assets.
• D) Projections of residual income.
• E) Consideration transferred by the parent company that implies a total subsidiary value.

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Definitions:

Positron Emission Tomography

An imaging technique that detects positrons emitted by a radioactively labeled substance in the body, used to observe metabolic processes.

Voltage-Gated

Referring to ion channels that open or close in response to changes in electrical membrane potential.

Sodium

Sodium is a chemical element with the symbol Na and atomic number 11, a soft, silvery-white, highly reactive metal.

Potassium

A chemical element with symbol K, vital for plant growth and important in nerve function in animals.