Any negative goodwill arising on the date of acquisition:

Multiple Choice

• is prorated among the parent company's identifiable net assets.

• is recognized as a gain on the date of acquisition.

• should be amortized over a predetermined period.

• is recognized as a gain on date of acquisition by both the parent and the non-controlling interest

Under the proportionate consolidation method the non-controlling interest (NCI) is:

Multiple Choice

• presented as a liability in the consolidated balance sheet.

• presented as a separate component of shareholders' equity on the consolidated balance sheet.

• not acknowledged at all.

• presented as a component of retained earnings on the consolidated balance sheet.

Which of the following statements pertaining to the non-controlling interest (NCI) when using the identifiable net assets (INA) method is TRUE?

Multiple Choice

• The NCI value is based on the full fair value of the subsidiary including goodwill.

• The NCI value is based on the book value of the net identifiable assets of the subsidiary excluding any value pertaining to goodwill.

• The NCI value is based on the book value of the net identifiable assets of the subsidiary including goodwill.

• The NCI value is based on the fair value of the net identifiable assets of the subsidiary but excludes any value pertaining to goodwill.