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Homework answers / question archive / In a less than 100% stock acquisition, when valuing the NCI, do you think, the same amount of goodwill will be computed regardless whether NCI is valued at fair value or valued at its proportionate share of the fair value of net assets? Why? 2
In a less than 100% stock acquisition, when valuing the NCI, do you
think, the same amount of goodwill will be computed regardless whether NCI is valued at fair value or valued at its proportionate share of the fair value of net assets? Why?
2. In step- acquisition, assuming that the fair value of net assets of the acquiree is given but the fair value or market of the acquiree's shares of stock is not given. If the acquirer opt to value the NCI at its proportionate share of the net assets, where do you value the previously held share of the acquirer?
Example : Previously held shares of the ACQUIRER=30% NCI = 20%
FV of ACUIREE'S net assets = P1,000,000
Where will you based the previously held shares of 30%?