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11- Associates & FV - Coggle Diagram

- - - - Representation on board of directors
      - Participation of policy making process
      - Material transaction between investee and entity
      - Interchange of management personnel
      - Provision of essential technical information
    - - Significant influence exists if the entity has 20% or more of the voting power of the investee, unless can be shown otherwise
      - Significant influence does not exist if less than 20%, unless can be shown otherwise
- - - - Included within the intangible NCA
    - - Recognised as a gain in P/L
      - Before recognition in the P/L, the calculations need to be reassessed to ensure they are accurate , then any remaining negative goodwill should be recognised in the P/L & also recorded in the group retained earnings
- - - - Consideration transferred
      - Assets acquired
      - Liabilities consumed
    - - Corresponding adjustment to goodwill
        
        Thereafter, goodwill is adjusted only for the correction of errors
      - The measurement period cannot exceed one year from the acquisition date
- - - - Discounted to present value to measure its FV
    - - At acquisition
        
        FV
      - Subsequent
        
        Change is due to additional info obtained that affects the position at the DOA, goodwill should be remeasured (within the measurement period)
        
        Change is due to any other change
        
        For example, meeting earning targets
        
        Consideration is equity instrument- not remeasured
        
        Consideration is cash - remeasured to FV with gains or losses through P/L
        
        Consideration is a financial instrument - account for under IFRS 9
  - - - then the portion of replacement scheme attributable to the pre-combination service is equal to
- - - - This includes intangible assets that may not be recognised in the separate FS
  - - - Can be recognised providing
        
        It is a present obligation
        
        FV can be measured reliably
      - This is a departure from IAS 37 where contingent liabilities are only disclosed rather than recognised
    - - Same as the valuation of contingent liabilities indemnified less an allowance for any uncollectable amounts
    - - FV is based on the remaining term, ignoring the likelihood of renewal