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IFRS 3 Business Combinations allows for a policy choice when valuing and measuring the Non-Controlling Interest...

IFRS 3 Business Combinations allows for a policy choice when valuing and measuring the Non-Controlling Interest on Consolidation. Name the two (2) choices available and explain how IAS 8: Changes in Accounting Policies affects the choice of an option.
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Answer #1

Two choice when valuing and measuring the Non Controlling Interest are:

1.At the fair value of their proportion of identifiable assets and liabilities.

2. At full fair value.

IF standards requires to disclose any change in NCI and needs to be disclosed as per IAS 8.

However after the measuring period ends,any change in the valuation of assets and liablities due to an information which existed in valuation date willbe accounted as an error as per IAS 8, Accounting policies ,change in accounting estimates, and errors.

If disclosure of any information in business combination is impracticable,the aquirer shall disclose the facts and explain y it is impracticable.

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