Page 43 - 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 separate financial
statements:

• IFRS 3 requires that Italia recognise a gain or loss on

this settlement of favourable/unfavourable

component of the reacquired right at acquisition date
(in Italia’s separate financial statements).

• The gain/loss to be recognised is measured at the lower of:

• the amount the contract is favourable/unfavourable

from the acquirer’s perspective; and

• the amount of any settlement provision to the

counterparty to whom the contract is unfavourable.

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