Which of the following statements is correct?
A)The best NCI fair value measure might be the share price of the subsidiary at control date applied to the number of NCI shares but this would depend on any share trading in the subsidiary being liquid and active
B)If shares in a subsidiary are obtained by an exchange of equity, and there is no active liquid market for the subsidiary's shares, then the best available NCI fair value measure would be the quoted price of the parent's shares, applied to the NCI shares as if they had been obtained by the parent
C)If the shares in a subsidiary are obtained for cash 'privately', and there is no active liquid market for the subsidiary's shares, the estimate of the control date fair value of NCI becomes very subjective
D)All of the above statements are correct

Question

Quizplus · Accepted Answer

All the statements provided offer valid scenarios and considerations for determining the fair value of a non-controlling interest (NCI) in various situations, such as when there is an active liquid market for the subsidiary's shares, when shares are exchanged for equity, and when shares are obtained privately without an active liquid market.

Which of the Following Statements Is Correct