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Module V· Non-Controlling Interest (NCI) in M&AIntermediate
Question

How do the two IFRS 3 NCI measurement methods differ, and what is standard under US GAAP?

Answer

Under IFRS 3, NCI can be measured at fair value or at the proportionate share of identifiable net assets. Fair-value NCI creates full goodwill, including goodwill attributable to minority shareholders. Proportionate-share NCI creates partial goodwill. US GAAP generally uses fair-value measurement, resulting in full goodwill.

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