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Chapter 19

The non-controlling interest

The non-controlling interest at acquisition can either be measured:

 at fair value – this calculates full goodwill (P’s goodwill + NCI’s goodwill)

 proportionately – this calculates P’s goodwill only.

The method used to measure the NCI should be decided separately for each
acquisition.

Illustrations and further practice

You can now attempt TYU question 5 from Chapter 19.

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