Proportionate share of the net assets

Assignment Help Finance Basics
Reference no: EM132622025

1. In a less than 100% stock acquisition, when valuing the NCI, do you think, the same amount of goodwill will be computed regardless whether NCI is valued at fair value or valued at its proportionate share of the fair value of net assets? Why?

2. In step- acquisition, assuming that the fair value of net assets of the acquiree is given but the fair value or market of the acquiree's shares of stock is not given. If the acquirer opt to value the NCI at its proportionate share of the net assets, where do you value the previously held share of the acquirer?

Example : Previously held shares of the ACQUIRER=30% NCI = 20%

FV of ACUIREE'S net assets = P1,000,000

Where will you based the previously held shares of 30%?

Reference no: EM132622025

Questions Cloud

How you would communicate the importance of healthcare issue : Consider how you would communicate the importance of a healthcare issue to a legislator/policymaker or a member of their staff for inclusion on an agenda.
Identify australian company that operation costing suitable : How Identify 2 specific Australian companies that Operation Costing (Hybrid Costing) and Process Costing system is suitable for, and explain why.
Suggest alternative performance measures : Suggest alternative performance measures that could be included in the performance measurement system to assist IDLC to achieve its mission
Discuss the features of job costing system : Discuss two potential uses of the cost information for decision-making, to the managers in each of the 2 organisations selected in Q2 above.
Proportionate share of the net assets : In a less than 100% stock acquisition, when valuing the NCI, do you think, the same amount of goodwill will be computed regardless whether NCI
What is the approximate payment at month five : What is the approximate payment at month five if interest is calculated at 16% per year, compounded monthly?
Journalise all the share transactions : The shares were allotted on the 5th of May 2020. Journalise all the share transactions. Narrations are not required
What the accounting principle is : When tangible assets cost less than a certain amount, they are expensed because the cost is considered immaterial. This accounting principle is?
What is the beta of portfolio : how much money will you invest in Stocky? How do you interpret your answer? What is the beta of your portfolio?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd