Page 41 - Finac2 Test 1 Slides - 3. Intra-Group Transactions

CONSOLIDATIONS AFTER THE DATE OF ACQUISITION

Calculations

C2. Reacquired right

COMMENT

• Impact of reacquired right on the consolidated financial
statements:

• Neither Italia nor Colour recognised an intangible

asset in their separate financial statements for the
right granted.

• The reacquired right represents an identifiable
intangible asset for the group and should be

recognised as part of the business combination.

• The value of the intangible asset to be recognised is

based on the remaining contractual term of the

contract, regardless of renewal options.

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