If we are asked to calculate minortiy interest on the test for an American company, do you guys think that they will be looking for the value based on the fair value of the noncontrolling interest (per SFAS 141R) or based on the book vlaue of the noncontrolling interest (per SFAS 141)? The CFAI text went into detail explaining the old (?) way based on SFAS 141. I understand both methods, I just don’t want to answer it wrong on the test. Thanks for your help, TheChad
I guess there will be clear reference to the purchase (old) or the acquisition (new) method.
I am not sure that the acquidition method is actually examinable. I think they have just made us aware but that we wont be penalised if answering the question in relation to the old method rather than the new one…?