Module 28: Fair Values and Goodwill

Question 1

Cost of investment - deferred cash

Answer 1

Discount to PV

Question 2

Cost of investment shares

Answer 2

Measure at acquisition date FV

Question 3

Cost of investment - liabilities

Answer 3

Measure at FV of liability at acquisition date

Question 4

Cost of investment - non monetary assets

Answer 4

Measure at FV of assets

Question 5

Cost of investment - contingent

Answer 5

Measure at FV at acquisition date
Do not remeasure if shares
Remeasure if cash or debt instrument

Question 6

Acquisition - related expenses

Answer 6

Recognise in SPL as incurred

Question 7

NCI

Answer 7

% x net assets of subsidiary at acquisition

Question 8

If FV of intangible can be determined at acquisition

Answer 8

Recognised

Question 9

Contingent liabilities

Answer 9

Recognise as a liability if a present obligation and FV can be measured

Question 10

Reorganisation costs

Answer 10

Recognise only if allowed by IAS 37

Question 11

Future operating losses

Answer 11

No provision is allowed

Question 12

Non current assets held for sale

Answer 12

Measure at FV less costs to sell