Components of the non-controlling interest

Learning objectives

• Analyse which components of non-controlling interest may be measured at the proportionate share and which are measured at fair value.L3, L4

Normative references

• IFRS 3 §19For each business combination, the acquirer measures at the acquisition date the components of non-controlling interest that are present ownership interests entitling their holders to a proportionate share of the net assets in the event of liquidation either at fair value or at the present ownership instruments' proportionate share in the recognised amounts of the acquiree's identifiable net assets; the choice is made combination by combination. All other components are measured at their acquisition-date fair values, unless another measurement basis is required by IFRSs. Restriction added by the Improvements to IFRSs of May 2010 (para. 64B). The method used for a case is never imposed by the Standard.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• The non-controlling interest in Garrigue SA comprises ordinary shares, which entitle holders to a proportionate share of net assets on liquidation, and share options, which do not. The acquirer elects the proportionate share for the business combination. How does it measure each component?L3