Ownership and NCI · Track 1 · Tutorial 4 of 4

Choose how to measure the NCI: share of net assets or fair value

When the group buys control of less than all of a company, the NCI can start at its share of the net assets or at its own fair value. The choice is made once, on the record that gives control, and it changes two figures: the NCI it starts at and the goodwill. Everything after that day works the same either way.

You will needAn acquisition of less than 100%, recorded as in Record an acquisition and its acquisition details. For fair value, the NCI’s fair value from the purchase price allocation.

By the endCompany F’s acquisition read under both measurements, and the one your standard requires chosen.

1Compare the two

Your Group bought 80% of Company F in September 2026 for 960,000, with net assets at fair value of 1,000,000. The valuation puts the 20% the group didn’t buy at 230,000.

The same purchase, with the NCI measured two ways.

	Share of net assets (partial goodwill)	Fair value of NCI (full goodwill)
The NCI starts at	20% × 1,000,000 = 200,000	Its fair value, 230,000
Goodwill	960,000 + 200,000 − 1,000,000 = 160,000: the group’s own	960,000 + 230,000 − 1,000,000 = 190,000: the group’s and the NCI’s
Difference	30,000 more in both NCI and goodwill under fair value. Equity and assets rise by the same amount.

The NCI’s fair value isn’t 20% of the price the group paid. A buyer of control usually pays a premium the minority’s shares don’t carry, so the fair value comes from the valuation.

2Know which your standard allows

Standard	Measurement
IFRS, SFRS(I), AASB	Either, chosen for each acquisition. See IFRS, SFRS or AASB.
US GAAP	Fair value only. See Measure NCI at fair value in a business combination.
UK GAAP (FRS 102)	Share of net assets only. See Measure NCI at its share of net assets.
Local GAAP	Whichever your local standard allows. See Choose how to measure NCI in a business combination.

BrizoConsol doesn’t stop you choosing a measurement your standard doesn’t allow, so check it before you record the acquisition.

3Choose it on the record that gives control

Under Company F’s Share purchases and sales, open the record that gives control: click + Record and Bought shares for a new one, or Edit on one already entered.
Under NCI measurement, choose Share of net assets (partial goodwill) or Fair value of NCI (full goodwill).
For fair value, enter the NCI fair value, 230,000, in the group’s currency.
Click Add Record or Save Changes.

NCI measurement appears only on the record that gives control, because that is the only purchase that measures goodwill. A later purchase or sale doesn’t ask, and a 100% purchase has no NCI to measure.

4See the difference in the entries

Open Ownership & Equity → NCI Report, choose YTD and Sep-2026, and click Company F’s row.
Find the NCI Net Assets and Goodwill rows under How each figure was worked out.

Row	Share of net assets	Fair value
NCI Net Assets	Formula NCI% × net assets at acquisition date, base 1,000,000, NCI % 20.00%, amount 200,000.	Formula NCI fair value (full goodwill), base 230,000, NCI % 100.00%, amount 230,000.
Goodwill	Formula balancing amount, 160,000.	Formula balancing amount, 190,000.

Every other acquisition row — the equity eliminated, the fair value adjustment, the investment — is the same either way. Under Ownership records, the record’s goodwill shows 160,000.00 or 190,000.00.

5Know what stays the same afterwards

From October, Company F’s NCI moves the same way under both measurements: 20% of its profit, at the month’s average rate, and 20% of its other changes in equity. Only the starting point differs, so the 30,000 stays in both the NCI and goodwill until goodwill is impaired or the company is sold.

Goodwill impairment	Post it as a journal of type Goodwill Impairment. Under fair value, the goodwill includes the NCI’s part, so decide how much of the impairment is the NCI’s, as your standard requires.
Losing control	The NCI removed from the group accounts is the balance carried, so it includes the extra 30,000. See Sell a controlling stake.

6Change the measurement

To correct the choice — for example once the valuation is final — edit the record that gave control, change NCI measurement or the NCI fair value, and click Save Changes. The acquisition entries are posted again from the month of the purchase.

Check

Under Company F’s Totals and accounts for this company, Acquisition goodwill shows 160,000 at share of net assets, or 190,000 at fair value. On Reports → Balance Sheet for Sep-2026, Goodwill - Company F and the NCI net assets line move by the same 30,000 between the two.

7If something goes wrong

What you see	What to do
NCI fair value is required when NCI is measured at fair value.	Enter the NCI’s fair value, or choose Share of net assets.
NCI measurement isn’t in the dialog	The record doesn’t give control: it is a later purchase, a sale, or set to JV / Associate.
Goodwill under fair value is less than under share of net assets	The NCI fair value entered is less than its share of the net assets. Check it against the valuation.
A bargain purchase gain appears	The price plus the NCI is less than the net assets at fair value. See Recognise a gain on a bargain purchase.

Want more detail? See the documentation

NCI — Non-Controlling Interest Ownership NCI Report

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