Page 20 - Finac1 Test 3 slides - 2. Intangible Assets

TEST 3 PREPARATION

Acquisition as part of a business combination

• The cost of an intangible asset acquired in a business combination in
accordance with IFRS 3, is its fair value at the date of acquisition. (IAS
38.33)

• The acquirer in a business combination recognises as an asset
separately from goodwill, an inprocess research and development
project of the acquiree if the project meets the definition of an
intangible asset and its fair value can be measured reliably. (IAS 38.34)

• An acquiree's in-process research and development project meets the

definition of an intangible asset when it:
• meets the definition of an asset; and

• is identifiable, that is, is separable or arises from contractual or other legal
rights. (IAS 38.34)

• If an intangible asset acquired in a business combination is separable or

arises from contractual or other legal rights, sufficient information exists
to measure reliably the fair value of the asset (IAS38.35)

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