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Consolidated Statement of Financial Position

IFRS 3 Business Combinations allows two methods to be used to calculate the value
of NCI's holding at the date of acquisition:

IFRS 3 Business Combinations permits groups to choose how to value NCI on an
acquisition by acquisition basis. In other words, it is possible for a group to apply the
fair value method for some subsidiaries and the proportion of net assets method for
other subsidiaries. An OT question will state which method is to be used.

3.5 Fair value method

The fair value of the NCI's interests may be calculated using the market value of the
subsidiary's shares at the date of acquisition or other valuation techniques if the
subsidiary's shares are not traded in an active market. You will be given the fair value
of the NCI in the assessment if you are asked to use this method.

3.6 Proportion of net assets method

Under this method, the NCI's holding is measured by calculating their share of the
fair value of the subsidiary's net assets at acquisition (W2).

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