Which of the following are situations where the subsidiary share price may not reliably be used to estimate the control date fair value of NCI
A)Cash is not used as the method of consideration
B)The subsidiary's share price is not quoted on an active or open securities market at control date
C)Neither the parent nor the subsidiary share price is quoted on an active or open securities market at control date
D)All of the above

Question

Quizplus · Accepted Answer

The subsidiary share price may not reliably estimate the control date fair value of NCI in all the given situations: when cash is not the method of consideration, when the subsidiary's share price is not quoted on an active or open securities market, and when neither the parent nor the subsidiary's share prices are quoted on such a market. These factors can all affect the reliability of using share price for valuation.

Which of the Following Are Situations Where the Subsidiary Share