Question
The following statement appears in note 1 (p. 35) of the 2013 annual report of Collins Food Ltd: On an acquisition-by-acquisition basis, the Group recognises
The following statement appears in note 1 (p. 35) of the 2013 annual report of Collins Food Ltd:
On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interests proportionate share of the acquirees net identifiable assets.
In measuring the NCI, AASB3 allows a choice between the full goodwill method and the partial goodwill method. Briefly explain how the NCI is measured under each method. What factors would the company consider in choosing one method over the other? What impact does the choice have on the quality of financial information?
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