The step 1 NCI entry to reflect the NCI share of equity at acquisition date:
A) never changes, so it does not need to be repeated every period.
B) changes every period as a result of changes in the subsidiary's pre-acquisition equity.
C) changes every period as a result of changes in the subsidiary's post-acquisition equity.
D) changes every period as a result of changes in NCI.

Question

Quizplus · Accepted Answer

The step 1 NCI entry reflects the NCI share of equity at acquisition date, and this value does not change over time, hence it does not need to be repeated every period.

The Step 1 NCI Entry to Reflect the NCI Share