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How to calculate the fair value adjustment for the equity method?

One of the key differences between the equity method and the acquisition method is the fair value adjustment (the difference between the net book value and fair market value of the acquired subsidiary’s net assets) will be amortized using the straight-line method over the life of the asset’s remaining useful life.

The visual below shows how the fair value adjustment is calculated based on the difference between the FMV and NBV of the net identifiable assets acquired:

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