MFRS

Insights into MFRS 3 - Recognising and measuring non-controlling interests

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Acquisitions of businesses can take many forms and can have a fundamental impact on the acquirer’s operations, resources and strategies. These acquisitions are known as mergers or business combinations, and the accounting and disclosure requirements are set out in MFRS 3 ‘Business Combinations’.

Our ‘Insights into MFRS 3’ series summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the most relevant features that could impact your business.

Definition of NCI

NCI is the term used in MFRS 3 and MFRS 10 ‘Consolidated Financial Statements’ to describe equity instruments of a subsidiary not held directly or indirectly by a parent. In a business combination, a NCI arises when an entity acquires less than 100% of the equity of the acquiree.

This article sets out the requirements for recognising and measuring any non-controlling interest (NCI).

Insights into MFRS 3

Insights into MFRS 3

Take a look at our publication to know about "Recognising and measuring non-controlling interests".

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How we can help

We hope you find the information in this article helpful in giving you some insight into MFRS 3. If you would like to discuss any of the points raised, please do not hesitate to contact us.