Business Combos (date of and after)

Question 1

IFRS 3

Answer 1

use acquisition method (parent and sub)

Question 2

Purchase of assets

Answer 2

record items at FV, any dif between what is paid and FV = goodwill
DR Recs
CR Liabilities
CR Consideration given up

Question 3

Purchase of assets

Answer 3

record items at FV, any dif between what is paid and FV = goodwill
DR Recs
CR Liabilities n money paid for assets

Parents adds new assets and sub subtracts assets sold (duh)

Question 4

Purchase of shares

Answer 4

DR Inv in subsidiary
CR $ paid for acquisition
parent - rec purchase of shares - consolidation
sub - continue operate as legal entity

Question 5

STEPS OF PURCHASE OF SHARES

Answer 5

1. Find the acquirer
   - Who has control (IFRS 10)
   - more than 50%, mgmt, who initiated the combo
2. ## Date of the acquisition
3. Determine the purchase price
4. Analyze the Acq. Diff
5. Find n measure assets n liabilities bought
6. rec. n measure goodwill or gain on BPO
7. Allocate NCI