Piecemeal acquisitions

Question 1

What is the accounting standard for Piecemeal Acquisitions?

Answer 1

IFRS 3

Question 2

Is the previously owned % included in the goodwill calculation at cost or FV?

Answer 2

FV - once you have control

Question 3

What other calculated is required when there is a piecemeal acquisitions at the date control is gained?

Answer 3

Gain or loss on derecognition of previously owned holding

Question 4

What is the proforma for gain/loss on derecognition? (A to S)

Answer 4

FV X
Inv in associate (X)
Gain/loss X/(X)

Question 5

What is the proforma for gain/loss on derecognition? (I to A)

Answer 5

FV X
Most recent FV (X)
Total. X/(X)

If FVTPL - to P/L
If irrevocable election - to OCI

Question 6

What is the proforma for adjustment to equity for a piecemeal acquisition?

Answer 6

Cash paid. (X)
Decrease in NCI. X
Adjustment. X/(X)