Please enable JavaScript.
Coggle requires JavaScript to display documents.
Basic Concepts (The acquisition method consists of (Identifying the…
Basic Concepts
-
-
It does NOT deal with
-
Acquisition that does not constitue a business. Here the individual identifiable assets (including IAS 38 Intangible assets) and liabs will be allocated the cost of the group as per their FV at date of purchase. Such trans does not give rise to goodwill
-
Objective
To improve the relevance, reliability and comparability of info that a reporting entity provides in FS about a BC and its effects.
How the acquirer recognizes and measures assets and liabs acquired and any non-controlling interest in acquiree
-
-
Identifying a BC:
An entity shall determine whether a transaction or event is a BC by applying definition provided in the IAS, which requires that the assets and liabs acquired should constitute a biz. If not a biz, then entity shall account for as an asset acquisition