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 |
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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