What is the measurement principle for non-controlling interest (NCI) at acquisition under IFRS 3?

IFRS 3 allows an explicit choice on a transaction-by-transaction basis to measure Non-Controlling Interest at the acquisition date using either:

1. Fair Value (Full Goodwill Method): NCI is valued at fair value (based on share price). This means goodwill is attributable to both the parent and to the NCI, and when there is an impairment loss the NCI participate in the loss.
2. Proportionate Share of Net Assets (Partial Goodwill Method): NCI is valued as its percentage share of the fair value of the acquiree’s identifiable net assets. Under this method, the goodwill is attributable to the parent only. This means when there is an impairment loss the NCI do not participate in the loss.