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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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