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In the unlikely event that the noncontrolling interests proportionate share of the subsidiarys net asset...

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Accounting

In the unlikely event that the noncontrolling interests proportionate share of the subsidiarys net asset fair values exceeds its total fair value, such an excess would serve to reduce the goodwill recognized by the parent.

If the total fair value of the acquired firm is less than the collective sum of its identifiable net assets, a bargain purchase occurs. In such rare combinations, the parent recognizes the entire gain on bargain purchase in current income. In no case is any amount of the gain allocated to the noncontrolling interest.

In other cases, especially when a large percentage of the acquirees voting stock is purchased, the consideration paid by the parent may be reflective of the acquirees total fair value. Note that in this case, because the price per share paid by the parent equals the noncontrolling interest per share fair value, goodwill is recognized proportionately across the two ownership groups.

Can you please explain these three statements in detail and in an easy manner? Can you also provide examples?

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