The measurement of the NCI allocation will be based on the subsidiary company's equity account balances.

Question

Quizplus · Accepted Answer

According to current accounting standards, the NCI allocation is based on the subsidiary company's equity account balances. This is because NCI represents the portion of a subsidiary company's equity that is not owned by the parent company. Therefore, it makes sense to allocate NCI based on the equity account balances in order to accurately reflect the portion of the subsidiary's value that is attributable to NCI.

The Measurement of the NCI Allocation Will Be Based on the Subsidiary