NCI
fair value formula
There is no formula to calculate the NCI fair value,
however, the market price of subsidiary at acquisition date may be considered
to calculate the fair value.
NCI
Fair Value Formula Example
J&J acquired an entity 75% shares, the market value
of the share at date of acquisition was $ 6. Total number of outstanding shares
is 100,000.Then NCI under fair value method can be calculated as under?
Solution
NCI % = 100% - 75% = 25%
NCI at fair value = 30% x 100,000 x 6
= 180,000
