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Ifrs 3 Business combinations permits non-controlling interests at the date of acquisition to be values by one of two methods: (1) at its proportionate share

Ifrs 3 Business combinations permits non-controlling interests at the date of acquisition to be values by one of two methods:

(1) at its proportionate share of the subsidiary's identifiable net assets; or

(2) at its fair value (usually determined by the directors of the parent)

Required:

Explain the difference that the accounting treatment of these alternative methods could have on the consolidated financial statements.

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