A U.S. company consolidates a VIE with which it has a contractual relationship, but no equity investment. If the company and the entity were not previously under common control, at the date the company identifies the entity as a VIE that meets the requirements for consolidation, the U.S. company’s consolidated balance sheet will report a noncontrolling interest valued at
the VIE’s book value.
the VIE’s fair value.
zero.
the fair value of the VIE’s assets.

The fair value of a financial asset or liability on a given date is understood as the amount for which it could be delivered or liquidated, respectively, on that date between two parties, independent and experts in the field, acting freely and prudently, under conditions of market. The most objective and usual reference to the fair value of a financial asset or liability is the price that would be paid for it in an organized, transparent and deep market ("quoted price" or "market price").

When there is no market price for a given financial asset or liability, it is used to estimate its fair value to that established in recent transactions of analogous instruments and, failing that, to mathematical valuation models sufficiently contrasted by the international financial community. In the use of these models, the specific peculiarities of the asset or liability to be valued and, in particular, the different types of risks associated with the asset or liability are taken into account. Notwithstanding the foregoing, the limitations of the valuation models developed and the possible inaccuracies in the assumptions and parameters required by these models may result in the estimated fair value of an asset or liability not exactly matching the price at which the asset or liability could be delivered or liquidated on the date of its valuation.