Page 468 - SBR Integrated Workbook STUDENT S18-J19

Chapter 25

Example 6

Fair value of identifiable net assets

$m

Share capital and retained earnings 30
Land ($9m – $4m) 5

Brand 8
Contingent liability (3)

––––
Fair value of identifiable net assets 40

––––

Example 7

Fair value of consideration

$m

Cash 25.0
Deferred cash ($10m × 1/1.05) 9.5
Contingent cash 6.0

Shares (2m × $2.50) 5.0
–––––

Fair value of consideration 45.5
–––––

Professional fees are expensed to the statement of profit or loss.

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