NCI Fair Value Formula
NCI can be
calculated by two methods i.e. NCI net asset method and NCI fair value methods.
In this article we would explain the NCI Fair value method.
|
NCI at Fair Value = Number of
Share (NCI) x Market price
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NCI Fair Value Method Example
A
Company acquires 80% shares of another Company (Y)
Total
Number of shares= 100,000
Market
price of shares= 8
Net
asset of Y = 500,000
What
would be value of NCI?
Solution
NCI at
Fair Value = Number of Share (NCI) x Market price
=20000 x
8
=160,000
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