Business Combinations Flashcards
1
Q
How does GAAP value noncontrolling interest?
A
Fair Value.
2
Q
How does IFRS value non controlling interest?
A
Choice of Fair Value or proportionate share of identifiable assets.
3
Q
What are the effects of dividends paid to nonminoritiy interests?
A
It lowers company retained earnings, but not the parent retained earnings. Minority interest goes up with subsidiary income and down with dividends paid to minority interest holders.
