Subsequent to acquisition, changes in current fair values for assets and liabilities are recognized as a gain or loss.
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When using the full equity method for equity investment of subsidiary, the direction of intra-entity sales affects investment balance of investor.
A VIE’s risks and rewards frequently are distributed according to other variable interests.
The subsidiary’s reported net income is adjusted for the impact of all transfers prior to computing the noncontrolling interest’s allocation.
The acquisition of NCI is treated as a market transaction with a corresponding adjustment to gain or loss.