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Any negative goodwill arising on the date of acquisition:
Multiple Choice
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is prorated among the parent company's identifiable net assets.
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is recognized as a gain on the date of acquisition.
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should be amortized over a predetermined period.
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is recognized as a gain on date of acquisition by both the parent and the non-controlling interest
Under the proportionate consolidation method the non-controlling interest (NCI) is:
Multiple Choice
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presented as a liability in the consolidated balance sheet.
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presented as a separate component of shareholders' equity on the consolidated balance sheet.
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not acknowledged at all.
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presented as a component of retained earnings on the consolidated balance sheet.
Which of the following statements pertaining to the non-controlling interest (NCI) when using the identifiable net assets (INA) method is TRUE?
Multiple Choice
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The NCI value is based on the full fair value of the subsidiary including goodwill.
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The NCI value is based on the book value of the net identifiable assets of the subsidiary excluding any value pertaining to goodwill.
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The NCI value is based on the book value of the net identifiable assets of the subsidiary including goodwill.
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The NCI value is based on the fair value of the net identifiable assets of the subsidiary but excludes any value pertaining to goodwill.
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