IFRS 3, unlike US GAAP, allows non-controlling interests at acquisition date to be recognized at either full fair value or a proportionate share of the fair value of identifiable net assets of the acquiree at acquisition date.

Suggestion for instructor: Break the class into groups of three or four persons to allow them to discuss among themselves the option that they will choose and why. After the small group discussion, ask the class to vote for the option that they will choose. Get different individuals to explain the reasons for their choice.

Required:

Which option will you choose and why? Explain the stakeholders’ perspective that you are upholding in your choice.