Page 14 - PowerPoint Presentation

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Acquisition method

• Identifiable Assets and Liabilities

• Per App A, assets are identifiable if they are:
• Separable

• Can be sold separately from rest of business, regardless
of management’s intentions

• OR
• Arise from contractual or legal rights

• Even if they can’t sell separately

• Examples: (B31 – 34, B37 & IE 16 – 44)

• In-process research & development (IAS 38.33, 34, 25)
• Customer lists that can potentially be sold

• Trade secrets

• Contracts – favourable or unfavourable

• With customers / suppliers
• Construction permits

• Order backlogs
• These have value and need to be identified

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