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13.8 Noncontrolling interests
Publication date: 28 Feb 2022
us IFRS & US GAAP guide
Noncontrolling interests are measured at fair value under US GAAP whereas IFRS provides two valuation options, which could result in differences in the carrying values of noncontrolling interests.
US GAAP | IFRS |
Noncontrolling interests are measured at fair value. | Entities have an option, on a transaction-by-transaction basis, to measure noncontrolling interests at fair value or the noncontrolling interests’ proportion of the fair value of the identifiable net assets (i.e., excluding goodwill). This option applies only to instruments that represent present ownership interests and entitle their holders to a proportionate share of the net assets in the event of liquidation. All other components of noncontrolling interest are measured at fair value unless another measurement basis is required by IFRS.
The use of the fair value option results in full goodwill being recorded on both the controlling and noncontrolling interest, consistent with US GAAP. |
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