You and your colleagues Yusuf a Accounting. You were discussin following: - The total fair value of a subsidi

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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You and your colleagues Yusuf and Hasan formed a study group to prepare for an upcoming assessment in Advanced
Accounting. You were discussing the presence of noncontrolling interest in business combinations. Yusuf argued the
following
The total fair value of a subsidiary at acquisition date is calculated as follows:
Fair value of consideration transferred
+Book value of noncontrolling interest
Total fair value of a subsidiary
You and Hasan disagree with Yusuf.
Required: Show to Yusuf how to calculate the total fair value of a subsidiary in the presence of noncontrolling
interest to show Yusuf his mistake.
Transcribed Image Text:You and your colleagues Yusuf and Hasan formed a study group to prepare for an upcoming assessment in Advanced Accounting. You were discussing the presence of noncontrolling interest in business combinations. Yusuf argued the following The total fair value of a subsidiary at acquisition date is calculated as follows: Fair value of consideration transferred +Book value of noncontrolling interest Total fair value of a subsidiary You and Hasan disagree with Yusuf. Required: Show to Yusuf how to calculate the total fair value of a subsidiary in the presence of noncontrolling interest to show Yusuf his mistake.
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