BODY/ DISCUSSION

A. Body/Discussion
o Calculate the fair value of the purchase
consideration transferred;
o Recognizing and measuring the identifiable
assets acquired, the liabilities assumed, and any
controlling interest in the acquiree;
o Recognizing goodwill, or in the case of a bargain purchase, a gain;
o o Prepare the worksheet, including the journal entries.

The fair value of the consideration transferred is calculated as the sum of

1. the acquisition date fair values of the assets transferred by the acquirer
2. the liabilities incurred by the acquirer to former owners of the acquiree
3. the equity interest issued by the acquirer.
The acquirer measures the identifiable assets acquired and liabilities assumed at their acquisition-date
fair values (unless another measurement basis is required by IFRS 3).

The acquirer recognizes as goodwill the excess of:

a) the consideration transferred, any non-controlling interest and the fair value of any previously held
equity interest in the acquiree over b) the net identifiable assets acquired.