Since 1995, Starbucks Corporation had owned a 39.5 percent equity interest in Starbucks Coffee Japan Ltd. ("Starbucks Japan"). lts joint venture partner, Sazaby League of Japan also owned a 39.5 percent equity interest in Starbucks Japan. The remaining 21 percent equity interest was held by public share holders and option holders.On October 31, 2014, Starbucks acquired all of Sazaby League's shares of Starbucks Coffee Japan, bringing Starbucks' total ownership to 79 percent. Starbucks paid Sazaby $508.7 million for the additional percent ownership. Later in 2014, Starbucks acquired the remaining 21 percent of Starbucks Coffee Japan. Access Starbucks' 2015 10-K annual report and answer the following:How does Starbucks explain the three different valuation bases for the following items?• Amount paid to Sazaby for 39.5 percent share purchase• The fair value of Starbucks' pre-existing 39.5 equity interest• The fair value of the 21 percent noncontrolling interest
Since 1995, Starbucks Corporation had owned a 39.5 percent equity interest in Starbucks Coffee Japan Ltd. ("Starbucks Japan"). lts joint venture partner, Sazaby League of Japan also owned a 39.5 percent equity interest in Starbucks Japan. The remaining 21 percent equity interest was held by public share holders and option holders.
On October 31, 2014, Starbucks acquired all of Sazaby League's shares of Starbucks Coffee Japan, bringing Starbucks' total ownership to 79 percent. Starbucks paid Sazaby $508.7 million for the additional percent ownership. Later in 2014, Starbucks acquired the remaining 21 percent of Starbucks Coffee Japan. Access Starbucks' 2015 10-K annual report and answer the following:
How does Starbucks explain the three different valuation bases for the following items?
• Amount paid to Sazaby for 39.5 percent share purchase
• The fair value of Starbucks' pre-existing 39.5 equity interest
• The fair value of the 21 percent noncontrolling interest
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