We believe that if a difference exists on the initial acquisition date between noncontrolling interests’ claims on net assets based on terms and conditions from contractual arrangements and either their fair value (for noncontrolling interests recognized in a business combination or an asset acquisition resulting from the consolidation of a VIE) or their proportionate share of relative fair value (for noncontrolling interests recognized in an asset acquisition resulting from the consolidation of a subsidiary that is not a VIE), it would be inappropriate for the reporting entity to recognize a gain or loss resulting from this difference when attributing income and OCI to the parent and noncontrolling interests. However, it would generally be acceptable to use the noncontrolling interests’ contractual claims on net assets for the reporting entity’s attribution of income and comprehensive income. Such an attribution approach should be consistent with contractual terms based on the claims on net assets, which may or may not be proportionate to ownership interests. See Sections 5.2.4 and 7.1.2 for additional considerations.
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