Why is it important to know if the parent paid a premium to acquire control of a subsidiary?

It is necessary to ascertain the subsidiary's total fair value at the acquisition date so that the value can be appropriately attributed to the parent and to the noncontrolling interest. If there is a control premium, then the total fair value of the subsidiary cannot be implied by the parent's consideration transferred unless the premium amount is first removed from the consideration value. If separate share fair values are specifically known for the shares acquired by the parent and the shares held by the noncontrolling interest, then the total fair value can be directly calculated. In either calculation, the control premium affects primarily the parents' shares acquired, and thus goodwill is disproportionately (relative to the ownership percentages) allocated to the controlling and noncontrolling interests. This disproportionate allocation of goodwill is essential to know because the resulting allocation of goodwill affects Entry A for the worksheet and thus affects the resulting balance of the noncontrolling interest reported on the consolidated balance sheet.