Page 51 - Finac2 Test 1 Slides - 3. Intra-Group Transactions

CONSOLIDATIONS AFTER THE DATE OF ACQUISITION

Solution

• COMMENT

• Acquisition costs

• Acquisition costs are incurred by the acquirer to effect a business combination.
These costs should not be included when measuring the consideration
transferred. Instead those costs should be expensed by the acquirer when
incurred (IFRS 3.53).

• Cost to issue debt or equity
• These costs should be accounted for in terms of IAS 32 as a deduction from the
fair value of a debt instrument or as a deduction from equity in respect of an
equity instrument.
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