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Exception to the recognition principle 1. Contingent liability- IAS 37.

Even not probable the outflow of resources, the contingent liability will be recognizing. 2. Income Taxes- IAS 12. The acquirer shall recognize the income tax asset or liability. 3. Employee Benefit- IAS 19. The acquirer shall recognize and measure it. 4. Indemnification assets 5. Reacquired Rights-Basis of remaining life. 6. Share Based Payment- IFRS 2 7. Assets Held for Sale- IFRS 5. FV less cost to sell Goodwill excess of consideration, amount of any non-controlling interest over the FV. The transaction should be in the business transaction, other transaction excluding this will be on provision of other IFRS. Direct and indirect cost- charged in expense Debt and Equity issuance cost- charged in Premium. Accordance to IAS 32 and IAS 39 Measurement Reacquired rights- amortized over the year and if it sells to third party it should include the carrying amount of the intangible asset in determining the gain or loss on the sale. Contingent Liabilities- higher the amount of that would be recognized in accordance with IAS 37 and the amount initially recognized less if appropriate cumulative amortization recognized in accordance with IAS 18 Revenue. Indemnification of Asset- recognized the same basis as indemnified liability or asset, subject to any contractual limitations on its amount and for not measured in F.V. , managers assessment of the collectivity of the indemnification of asset. It will derecognize if only when it collects, sells or loses right to it.
The acquirer a shall account for changes in the fair value of contingent consideration that are not measurement period adjustments as follows: (a) Contingent consideration classified as equity shall not be remeasured and its subsequent settlement shall be accounted for within equity. (b) Contingent consideration classified as an asset or a liability that: (i) is a financial instrument and is within the scope of IFRS 9 or IAS 39 shall be measured at fair value, with any resulting gain or loss recognized either in profit or loss or in other comprehensive income in accordance with IFRS 9 or IAS 39 as applicable. (ii) is not within the scope of IFRS 9 or IAS 39 shall be accounted for in accordance with IAS 37 or other IFRSs as appropriate.

The acquirer shall account for changes in the fair value of contingent consideration that are not measurement period adjustments as follows: (a) Contingent consideration classified as equity shall not be remeasured and its subsequent settlement shall be accounted for within equity.

(b) Contingent consideration classified as an asset or a liability that: (i) is a financial instrument and is within the scope of IFRS 9 or IAS 39 shall be measured at fair value, with any resulting gain or loss recognised either in profit or loss or in other comprehensive income in accordance with IFRS 9 or IAS 39 as applicable. (ii) is not within the scope of IFRS 9 or IAS 39 shall be accounted for in accordance with IAS 37 or other IFRSs as appropriate.
The acquirer shall disclose information that enables users of its financial statements to evaluate the financial effects of adjustments recognised in the current reporting period that relate to business combinations that occurred in the period or previous reporting periods.

Assets and liabilities that arose from business combinations whose acquisition dates preceded the application of the IFRS shall not be adjusted upon application of IFRS. If it does not apply IFRS 3, it should apply this. In reverse acquisition, the public entity will be the accounting acquiree and the private entity will be the accounting acquirer.

The acquirer shall determine whether the terms of each operating lease in which the acquiree is the lessee are favourable or unfavourable. The acquirer shall recognise an intangible asset if the terms of an operating lease are favourable relative to market terms and a liability if the terms are unfavourable relative to market terms. Paragraph B42 provides guidance on measuring the acquisition-date fair value of assets subject to operating leases in which the acquiree is the lessor. Recognition of Intangible Asset 1. 2. 3.
Acquiree leases a manufacturing facility under an operating lease that has terms favourable relative to market terms. If it is identifiable, separate recognition should be If not identifiable, it should be classify separately from goodwill.

Goodwill Assembled Workforce

Not included Identifiable Non tangible asset (operating lease) Technological patent. License. Deposit liabilities and related depositor relationship intangible assets. Reacquired Rights

No recognition of valuation allowances. No recognition of asset or liabilities in the terms of operating lease acquired. Acquisition date value of the acquirees equity interests will be using to compute the amount of goodwill.