Consolidation at Acquisition: NCI, FVE vs INA, Bargain Purchase

Proportionate consolidation: how much of the subsidiary is brought on, is NCI shown, and where is this method still permitted?

Writing the FVE goodwill formula, a colleague leaves out the fair value of the NCI. Which figure has he produced instead, and which way is goodwill misstated?

You are told to consolidate at acquisition using the FVE (entity / full goodwill) method. At what amount do you record NCI, and what does that choice do to goodwill?

NCI represents the subsidiary shares the parent did NOT acquire. On the consolidated balance sheet, in which section does it sit, and why does that placement matter?

A parent owns a controlling but non-100% stake in a sub. Under both FVE and INA, what percentage of the sub's identifiable assets and liabilities is consolidated, and at what value?

When deriving INA goodwill, which slice of the identifiable net assets' fair value do you subtract, and whose goodwill ends up recognized?

After January 1, 2011, which two methods are acceptable for consolidating a subsidiary, and which earlier method did they replace?

Contingent consideration in a business combination: what initial classification decides whether you remeasure it each period, and where do remeasurement changes go?

A team consolidates under INA but records NCI at its fair value. What did they get wrong, and what does the error do to goodwill?

Two staff disagree on FVE vs INA. What is the single property that distinguishes them, and what is identical under both?

Acquisition cost is below the parent's share of the FV of identifiable net assets (a bargain purchase). How and when is the difference recognized?

A staffer books the whole acquisition differential as goodwill. What component did they miss, and how does that misstate the balance sheet?

Testing a non-wholly owned subsidiary's goodwill for impairment under the INA method creates an apples-to-oranges comparison. What adjustment fixes it, and what must you then do with the resulting loss?

On the acquisition-date consolidated balance sheet, whose share capital and retained earnings make up the controlling-interest equity — the parent's, the subsidiary's, or a blend of both?

A subsidiary's depreciable building is revalued to fair value on consolidation. IFRS 10 is silent on how to split that fair value into cost and accumulated depreciation — so where does the guidance come from, and which method does this text default to?

A parent forms a brand-new subsidiary and buys its entire initial share issue. Why is the acquisition-date consolidation trivial here compared with buying an existing company?

Four historical consolidation methods each carry an older theoretical name. Match each modern label — proportionate, INA, FVE — to the older name and the goodwill nickname it is also known by.

The obsolete parent company method handled NCI very differently from today's methods. Where on the balance sheet did it put NCI, and at what value?

Under FVE, 100% of a partly-owned subsidiary's identifiable net assets are carried at full fair value. Does that full-fair-value measurement continue in every future period, or only at one point in time?

Under FVE the parent's own consideration values the controlling interest, but NCI has no consideration to point to. What is normally the most objective evidence of NCI's acquisition-date fair value?

A parent pays $9 per share to seize control while the minority shares keep trading near $7.75. When valuing NCI under FVE, why shouldn't you apply the $9 to the NCI shares too?

Reported consolidated goodwill comes out identical under the INA method and one other method. Which method, and why do they tie?

You compute a negative acquisition differential that looks like a bargain purchase. Before booking a gain, what does IFRS 3 require you to do, and what real-world causes should make you skeptical?

In a bargain purchase of a non-wholly owned subsidiary, intuition says split the gain between parent and NCI. What does IFRS 3 actually require, and where does the NCI's notional share go?

A negative acquisition differential is not the same thing as negative goodwill. How can a negative acquisition differential still end up producing positive goodwill?

The subsidiary already carries goodwill from its own past acquisition when the parent buys it. What happens to that pre-existing goodwill on consolidation?

Every consolidated account is unchanged whether you pick FVE, INA, or proportionate — except a couple. Which accounts move, and which method flatters the current ratio versus the debt-to-equity ratio?

Under ASPE, is a private company forced to consolidate its subsidiaries the way an IFRS reporter is? What are its options?

A subsidiary's goodwill is impaired in a later period. Why does the impairment hit the noncontrolling interest under FVE but leave NCI untouched under INA?

Before you can make any working-paper eliminations at acquisition, you first compute the acquisition differential. It is the gap between the consideration and which measure of the subsidiary's net assets?

Under push-down accounting, where does the acquisition differential get recorded, and why can't a company reporting under IFRS use it?

No market price exists for the NCI shares and there's no reason to expect a control premium. Under FVE, how does the implied-value approach pin down NCI and total goodwill?

A reporting entity finds every available way of valuing the NCI too costly, too judgmental, or simply uncomfortable. What accounting-policy escape hatch does that give it?

The INA method was invented to sidestep one specific difficulty of the FVE method. What problem was it designed to avoid, while still keeping which FVE feature?