advanced financial accounting: chapter 4

Advanced Financial Accounting: Chapter 4

Group Reporting III

Tan, Lim & Lee Chapter 4 1© 2015

Learning Objectives

1. Understand the rationale for elimination of investment;2. Understand the concept of non-controlling interests;3. Appreciate the alternative measurement basis for non-controlling

interests under IFRS 3; 4. Know how to prepare consolidation journal entries relating to

goodwill, depreciation and amortization of differences between book values and fair values of identifiable assets, contingent liabilities of acquired subsidiaries and non-controlling interests;

5. Know how to prepare consolidation journal entries to allocate current and past income to non-controlling interests; and

6. Understand the components of non-controlling interests and know how to analytically determine their balances

Tan, Lim & Lee Chapter 4 2© 2015

Content

Tan, Lim & Lee Chapter 4 © 2015 3

1. Introduction

2. Elimination of the investment in a subsidiary

3. Effects of amortization, depreciation and disposal of undervalued or overvalued assets and liabilities subsequent to acquisition

4. Accounting for non-controlling interests under IFRS 3

5. Goodwill impairment tests

6. Conclusion

1. Introduction

Introduction


Recap of chapter 3• Acquisition method: recognize and measure identifiable net assets

at fair value + recognize goodwill– Recognition and measurement principles

• Different forms of business combination but in substance they share common features – Acquirer who gains control of one or more businesses– Acquisition of a subsidiary = Acquisition of net assets of the

acquiree

Introduction

Focus of chapter 4:• Subsequent effects when identifiable net assets are consumed, extinguished or

amortized.– Sale, consumption, use or settlement of the assets and liabilities of acquiree

should be recorded at fair value– Test for impairment of goodwill

• Subsequent effects of acquisition– Demonstrate how consolidation journal entries are passed to record the

subsequent effects of acquisition• Accounting for non-controlling interests

– Show how the balance of the non-controlling interests can be analyzed with respect to three components

– Illustrate the consolidation journal entries to recognize non-controlling interest’s share of equity

• Accounting for business combinations in multiple periods– Explain the re-enactment process: involving re-enacting certain past

consolidation adjusting entries.


Content


1. Introduction

2. Overview of the consolidation process




6. Conclusion

7. Appendix 4: Illustrations of non-controlling interests measured as a proportion of acquisition-date identifiable net assets.


Elimination of Investment Account

• Investment account is eliminated – To ensure that the investment account must be zero– Substituted with subsidiary’s identifiable net assets and goodwill (residual)– Rationale: Avoid recognizing assets in two forms (investment in parent’s

statement of financial position and individual assets and liabilities of subsidiary)


Share of book value of

subsidiary’s net assets at acquisition

date

+

Share of excess of fair

value over book value of identifiable net

assets

+Goodwill

Consideration transferred

=

Eliminated against subsidiary’s share capital and pre-acquisition retained earnings

What the parent is paying for

Elimination of Investment Account

• Investment account is eliminated (Continued)– Pre-acquisition retained earnings or pre-acquisition reserves of subsidiary

are not included in consolidated equity• Rationale: Pre-acquisition retained earnings arose prior to the exercise

of control by parent– The elimination process will result in residuals comprising of

• Goodwill; and• Excess or deficit of fair value over book value of identifiable net assets

• Re-enactment of elimination of investment entry in subsequent year– Re-enacted as long as the investment exists

• Rationale: parent’s legal entity financial statements would include investment in subsidiary balance


Illustration 1: Elimination of investment

Illustration On 8 August 2010, Parent Co. bought 100% interest in subsidiary for $200,000. At the date of acquisition, Subsidiary Co had the following:

Share capital: $50,000Retained earnings: $30,000Equity: $80,000

At acquisition date, Subsidiary Co unrecognized intangible assets had a fair value of $50,000. Tax rate was 20%




Parent Subsidiary Consolidation

adjustmentsConsolidated Statement of financial

position

Dr Cr

AssetsInvestment in Subsidiary 200,000 200,000 0

Goodwill (Note 2) 80,000 80,000Other net assets (Note 1) 300,000 80,000 50,000 10,000 420,000

500,000 80,000 130,000 210,000 500,000

Equity

Share capital 100,000 50,000 50,000 100,000

Retained earnings 400,000 30,000 30,000 400,000

500,000 80,000 80,000 0 500,000

210,000 210,000

Illustration 1: Elimination of Investment

Note 1: Increase in other net assets due to recognition of intangible assets 50,000

Decrease in other net assets due to recognition of deferred tax liability (10,000)

Net increase in other net assets 40,000

Note 2: Goodwill is excess of the investment amount over the FV of identifiable net assets

Investment in Subsidiary 200,000 Book value of equity or net assets (80,000) Fair value of intangible asset 50,000 Book value of intangible asset 0 Excess of fair value over book value 50,000 Deferred tax effects (10,000)

(40,000) Goodwill 80,000



CJE1: Elimination of investment in subsidiaryDr Share capital 50,000Dr Retained earnings 30,000Dr Goodwill 80,000Dr Intangible asset 50,000Cr Investment in Subsidiary 200,000Cr Deferred tax liability 10,000

210,000 210,000


Re-enacting CJE

• Building blocks of consolidation worksheet are the legal entity financial statements of parent and subsidiary

• CJE 1 has to be re-enacted at each reporting date as long as Parent has control over subsidiary

• Each consolidation process is a fresh-start approach

Content


1. Introduction





6. Conclusion


In Subsequent Years


• At acquisition date, we recognize:– Fair value of identifiable net assets of acquiree as at acquisition date,– Intangibles, contingent liabilities,– Deferred tax assets or liabilities on the above; and– Goodwill as a residual

• In subsequent years:– Subsequent extinguishment of assets and liabilities of subsidiary must be

determined based on the fair values at acquisition date.– Therefore, subsequent amortization, depreciation and cost of sales of acquired

assets are determined based on fair value as at acquisition date– Elimination of consideration transferred , recognition of fair value adjustments

and amortization entries must be repeated until:i. Date of disposal of the investment in subsidiary; orii. Date when control is lost

In Subsequent Years

• In subsequent years (Continued)– Acquisition method only recognizes fair value at critical event:

acquisition date• New internally-generated goodwill or subsequent appreciation in fair

values are not recognized subsequent to acquisition date– Since net assets are carried at book value in the separate financial

statements, the subsequent amortization/depreciation/disposal are adjusted in the consolidation worksheet


(FV- BV) adjustment to expense =

FV of expense in consolidated

financial statements

BV of expense in separate financial

statements +

Adjusted in consolidation worksheet

Illustration 2: Amortization of Fair Value Differentials


• P Co paid $6,200,000 and issued 1,000,000 of its own shares to acquire 80% of S Co on 1 Jan 20X5

• Fair value of P Co’s share is $3 per share• Fair value of net identifiable assets is as follows:

Book value Fair value Remaining useful lifeLeased property 4,000,000 5,000,000 20 yearsIn-process R&D 2,000,000 10 yearsOther assets 1,900,000 1,900,000 Liabilities (1,200,000) (1,200,000) Contingent liability (100,000) Net assets 4,700,000 7,600,000

Share capital 1,000,000

Retained earnings 3,700,000

Shareholders’ equity 4,700,000


Additional information:• Contingent liability of $100,000 was recognized as a provision loss

by the acquiree in legal entity financial statement on Dec 20X5• FV of NCI at acquisition date was $2,300,000• Net profit after tax of S Co for 31 Dec 20X5 was $1,000,000• No dividends were declared during 20X5• Shareholders’ equity as at 31 Dec 20X5 was $5,700,000

Q1 : Prepare the consolidation adjustments for P Co for 20X5Q2 : Perform analytical check on balance of NCI as at 31 Dec 20X5


Illustration 2: Amortization of Fair Value Differentials• Consideration transferred = Cash consideration + Fair value

of share issued = $6,200,000 + (1,000,000 x $3) = $9,200,000

• Deferred tax liability = 20% x ($7,600,000 - $4,700,000) = $580,000

• Goodwill = Consideration transferred + NCI – Fair value of net identifiable assets, after-tax = $9,200,000 + $2,300,000 – ($7,600,000 - $580,000) = $4,480,000




• P’s share of goodwill = Consideration transferred – 80% x Fair value of net identifiable assets, after tax = $9,200,000 – 80% x $7,020,000 = $9,200,000 – $5,616,000 = $3,584,000

• NCI’s share of goodwill = Consideration transferred – 20% x Fair value of net identifiable assets, after tax = $2,300,000 – 20% x $7,020,000 = $2,300,000 – $1,404,000 = $896,000



Consolidation adjustments for 20X5

CJE 1: Elimination of investment in Subsidiary

Dr Share capital 1,000,000Dr Opening retained earnings 3,700,000Dr Leased property 1,000,000Dr In-process R&D 2,000,000 Dr Goodwill 4,480,000 Cr Contingent liability 100,000Cr Deferred tax liability (net) 580,000Cr Investment in S 9,200,000Cr Non-controlling interests 2,300,000



$200,000

Dep exp: $50,000

Dep. of leased

property

Based on book value Based on FV

$250,000

Under dep. by $50k

$ 0

Amort exp: $200,000

Amort. of R&D

Based on book value Based on FV

Under amort. by $200k

CJE 2: Depreciation and amortization of excess of FV over book value

Dr Depreciation of leased property 50,000 Dr Amortization of in-process R&D 200,000Cr Accumulated depreciation 50,000 Cr Accumulated amortization 200,000



CJE 3: Reversal of entry relating to provision for loss

Dr Provision for loss 100,000 Cr Loss expense 100,000

Note: Contingent liability was already recognized in CJE 1. The recognition by the acquiree in its legal entity financial statement results in double counting; hence this reversal entry is necessary

CJE 4: Tax effects on CJE 2 & CJE 3

DrDeferred tax liability (net)

30,000

Cr Tax expense 30,000

20% * (200k +50k -100k)

Illustration 2:Amortization of Fair Value Differentials


CJE 5: Allocation of current year profit to non-controlling interests (NCI)

Dr Income to NCI 176,000Cr NCI 176,000

Net profit after tax 1,000,000 Excess depreciation (50,000) Excess amortization (200,000)Reversal of loss from contingent liability

100,000Tax effects on FV adjustments 30,000Adjusted net profit 880,000 NCI’s share (20%) 176,000

Illustration 2: Amortization of Fair Value DifferentialsExplanatory note to CJE 5: • NCI have a share in the extinguishment of the initial FV differences

and in the impairment of goodwill.• Net profit after tax represents that increase in the book value of

equity of the subsidiary• Other adjustments relate to the extinguishment of the FV

differentials• NCI have a share of $176,000 of adjusted profit which represents

– Increase in book value– Decrease in fair value differentials




NCI balance: NCI at acquisition date (CJE1) $2,300,000 Income allocated to NCI for 20x5 (CJE 5)

176,000NCI as at 31 Dec 20x5 $2,476,000

Illustration 2: Amortization of Fair Value DifferentialsQ2 : Perform an analytical check on the balance of NCI as at 31 Dec 20X5

1st Step: reconstruct the balance of non-controlling interest as at 31 Dec 20x5


NCI as at acquisition date (CJE 1) 2,300,000

Income allocated to NCI for 20x5 (CJE5) 176,000

NCI as at 31 December 20x5 2,476,000



2nd step: reconcile the balance to the three components that NCI have -

Non – controlling interests

Share of book value of net assets

Share of Unamortized

FV adjustment Share of

unimpaired goodwill

$5,700,000 x 20%= $1,140,000

+ ($1,000,000 x 19/20 x 80% x 20%) + ($2,000,000 x 9/10 x 80% x 20%) = $440,000

+ $896,000 = $2,476,000

Content


1. Introduction





6. Conclusion

4. Accounting for non-controlling interest under IFRS 3

Non-controlling interest

• NCI only arises in consolidated financial statements where:– one or more subsidiaries are not wholly owned by the parent (IFRS 10)

• NCI are entitled to their share of retained earnings of the subsidiary from incorporation– No distinction between pre-acquisition and post-acquisition retained

earnings for NCI

• Same applies to OCI– NCI collectively have a share of accumulated OCI arising from

incorporate date to the current date

• NCI are normally a credit balance– Share of residual interests in the net assets of a subsidiary– Total equity (parent’s and NCI) = Assets - Liabilities


Non-Controlling Interests’ Share of Goodwill• IFRS 3 Para 19 allows NCI to be measured in either of two ways


Non-controlling interests

Measured at Fair value at acquisition

date (include goodwill)

“ Fair value basis”

Measured as a proportion of the

recognized amounts of the identifiable assets as

at acquisition date

Non-Controlling Interests’ Share of Goodwill• Under the fair value basis:

– FV is determined by either the active market prices of subsidiary’s equity share at acquisition date or other valuation techniques

– FV per share of NCI may differ from parent because of control premium paid by parent (e.g. 20% premium over market price to gain control)

– NCI comprises of 3 items:



Share of book value of net assets

Share of unamortized

FV adjustment(FV - BV)

Share of unimpaired goodwill

Non-Controlling Interests’ Share of Goodwill• Under the fair value option:

– Journal entry to record NCI at fair value (re-enacted each year):


Dr Share capital of subsidiary Dr Retained earnings at acquisition dateDr Other equity at acquisition date Dr FV differentials (FV- BV)

Dr Goodwill (Parent & NCI) Dr/Cr Deferred tax asset/ (liability) on fair value adjustmentCr Investment in subsidiary Cr FV differentials (BV – FV)

Cr Non-controlling interests (At fair value)

Non-Controlling Interests’ Share of Goodwill• Under the 2nd option:

– NCI is a proportion of the acquiree’s identifiable net assets (i.e. not full fair value)

– NCI comprises of 2 items:



Share of book value of identifiable net assets

Share of unamortized

of FV adjustments (FV- BV)

Non-Controlling Interests’ Share of Goodwill• Under the 2nd option:

– Journal entry to record NCI (re-enacted each year):


Dr Share capital of subsidiary Dr Retained earnings at acquisition dateDr Other equity at acquisition date Dr FV differentials (FV – BV)Dr Goodwill (Parent only) Dr/Cr Deferred tax asset/ (liability) on FV adjustmentCr FV differentials (BV – FV)Cr Investment in S subsidiary

CrNon-controlling interests (NCI % x FV of identifiable net assets)

Non-Controlling Interests’ Share of Goodwill


NCI measured at FV

NCI measured as a proportion of the

acquiree’s identifiable net assets

Book value of net assets

Fair value – Book value of net assets

Goodwill

Illustration 3:Non-Controlling Interests’ Share of Goodwill

The FV of NCI that owned 10% of Subsidiary A as at 31 Dec 20x1(Acquisition date) was $25,000. The financial statements of Subsidiary A as at acquisition date are as shown below. Subsidiary A had unrecognized intangible assets with fair value of $40,000. Tax rate is 20%. Determine NCI’s good will as at acquisition date.

Subsidiary A’s Statement of Financial Position as at 31 December 20x1:


Net assets 160,000

Equity 140,000

Share Capital 20,000

Retained Earnings 160,000

Illustration 3:Non-Controlling Interests’ Share of Goodwill

Fair value of NCI 25,000Fair value of identifiable net assets Book value of equity 160,000 Fair value of intangible assets 40,000 Deferred tax on intangible assets (8,000) 192,000

NCI's share of FV of identifiable net assets (10%) 19,200

NCI's goodwill (25,000 - 19,200) 5,800


Under alternative basis where NCI are measured as a proportion of the recognized amounts of the identifiable assets as at acquisition date: NCI’s goodwill is zero Amount to be recognized as NCI is $19,200 only

Accounting for Non-Controlling Interests under IFRS 3• In consolidation, non-controlling interests have a share of:

Profit after tax Dividends declared Share capital Retained earnings and other comprehensive income (eg. Revaluation

reserve) at acquisition date Change in retained earnings and other comprehensive income from the

date of acquisition to the current period Fair value differential of a subsidiary’s net assets at acquisition date Subsequent extinguishment of the different between the fair value and

book value of identifiable net assets; and Goodwill (if the fair value alternative is adopted)


Reconstructing NCI on Statement of Financial Position


Beginning of current year

End of current year

Date of acquisition

NCI have a share of 1. Share capital2. Retained earnings3. Other equity4. Fair value

differentials5. Goodwill

NCI have a share of 1. Change in share capital2. Change in retained

earnings3. Change in other equity4. Past amortization of fair

value differential5. Past impairment of

goodwill

NCI have a share of 1. Profit after tax2. Current amortization of

fair value differential3. Current impairment of

goodwill4. Dividends as a

repayment of profits5. Change in other equity

Incorporation date

Reconstructing NCI on Statement of Financial Position• At each reporting date, group will re-create NCI account in the

consolidated financial statement by recognizing the sequential build up:– As of acquisition date– From acquisition date to beginning of the current period– During the current period

• Known as the “re-enactment process” of the attribution of equity to NCI


Allocation to Non-controlling Interests


1. Allocation of the change in equity from date of acquisition to the beginning of the current period

• No distinction between pre-acquisition or post-acquisition profits

• To transfer the NCI’s share of subsidiary’s retained earnings to NCI

Dr Retained earnings (NCI % x in RE from acquisition date to beginning of current period) Cr NCI



2. Allocation of current profit after tax to NCI

• Attribution of profit to NCI is not expense item and should not be shown above the profit after tax line

• Without attribution, retained earnings of the group would be over-stated and NCI’s share of equity would be under-stated

• The same attribution principle applies to Other Comprehensive Income (OCI) – NCI are attributed their share of OCI arising during a period

Examples: Revaluation surplus or deficit on property, PPE and intangible assets etc.

Dr Income to NCI Cr NCI



3. Allocation of dividends to NCI• Reverses the profit and loss effects of dividends in consolidated

income statement• A repayment of profits by a subsidiary• Reduces the NCI’s residual stake in the net assets of the subsidiary

Dr Dividend income (Parent) Dr NCI (Equity)Cr Dividends declared (Subsidiary)

Can NCI be a debit balance?

• IFRS 10 paragraph B94 (Appendix B) requires NCI to have a debit balance if:

– NCI share of losses > NCI existing share of the subsidiary’s share capital, retained earnings and other equity items

• Departure from an earlier version of IAS 27 that requires NCI to be carried at zero balance

– Losses being borne by majority shareholders unless the NCI have binding obligation to make further investments to make good the losses

• Opposing views on NCI being a debit balance– Parent who has control of subsidiary should bear the responsibility of supporting

an insolvent subsidiary – Limited liability argument: NCI stand to lose only their investment and have no

legal obligation to bear any further lossesTan, Lim & Lee Chapter 4 © 2015 44

Can NCI be a debit balance?

• IASB’s support for NCI to be a debit balance– NCI participate proportionally in the risks and rewards of a subsidiary– Limited liability argument: Parent stand to lose only their investment and have no

legal obligation to bear any further losses in the absence of guarantees


Analytical check on Non-controlling Interests’ balance• If the fair value basis is adopted

– NCI in a subsidiary have a share in the same three components that the parent has under the acquisition method

• If NCI are recognized as proportion of FV of identifiable net assets– Only two components apply to non-controlling interests

• Share of book value of net assets or shareholders’ equity of a subsidiary

• Share of the balance of unamortized fair value adjustments

• If NCI have both present ownership interests (e.g. ordinary shares) and potential ownership interests (e.g. options)– Only present ownership interests may be measured as a proportion of

identifiable net assets


Analytical check on Non-controlling Interests’ balance


NCI’s balance at year-end

NCI’s share of (NCI % multiply by):a) Book value of net assets of subsidiary at

year-end +/- unrealized profit/loss from upstream sale

b) Unamortized balance of FV adjustments at year-end

c) Unimpaired balance of goodwill at year end ([Acquisition-date FV of NCI – NCI % x acquisition-date FV of identifiable net assets] less any cumulative impairment)

=

Content


1. Introduction



4. Accounting for non-controlling interest under IFRS 3


6. Conclusion


Goodwill Impairment Test

• IAS 36: Goodwill has to be reviewed annually for impairment loss

– Reviewed as part of a cash-generating unit (CGU)

• CGU is the lowest level at which the goodwill is monitored for internal

management purposes and

• Not larger than a segment determined under IFRS 8 Operating Segments

– Goodwill will be allocated to each of the acquirer’s CGU, or group of

CGUs




1. Carrying amount:– Net assets of the cash-generating unit– It includes entity goodwill attribute to parent and NCI

2. Recoverable amount:– IAS 36 allows the higher of the below two metrics to determine

recoverable amount:

Higher of FV less cost to sell (an arms-length measure) Uses market based inputs or market participants’ assumptions in the

valuation process

Value-in-use (VIU) Present value of future net cash flows Uses internal or entity-specific input to determine the future cash flows VIU likely to be more discretionary as assumptions about future cash flows

are required


3. If carrying amount > recoverable amount– Impairment loss is first allocated to goodwill– Then to other assets in proportion to their individual carrying amounts– Impairment tests to be carried out on annual basis; regardless of

whether indications of impairment exists– Impairment once made is not reversible, as it may result in the

recognition of internally-generated goodwill which is prohibited under IAS 38




Determine the carrying amount of the CGU

Determine the recoverable amount of the CGU

If carrying amount ≤ recoverable amount

If carrying amount ≥ recoverable amount

No impairment lossAllocate impairment loss

to goodwill first and balance to other net assets

Recoverable amount: Higher of fair value or value in use

Steps for impairment test



NCI at FV at acquisition date

NCI as a proportion of identifiable net asset at

acquisition dateGoodwill on consolidation Includes NCI’s goodwill Excludes NCI’s goodwill

Carrying amount of cash-generating unit

Goodwill is allocated to cash-generating unit without further adjustment

Goodwill has to be grossed up to include NCI’s share

Notionally adjusted goodwill= Recognized goodwill/ parent’s interest

Impairment loss

Impairment loss is shared between parent and NCI on the same basis on which profit or loss is allocated

Impairment loss is borne only by parent as goodwill for NCI is not recognized

Illustration 4:Goodwill Impairment TestCompany X has 80% ownership in a CGU with identifiable net assets of $6 million as at 31 Dec 20x1. The recoverable amount of the CGU as an entity was $5 million as at that date. Determine the impairment loss of goodwill in the CGU under two alternative measurement basis:

(a) NC measured at FV at acquisition date. Goodwill recognized by CGU was $1.2 million

(b) NCI measured as a proportion of FV of identifiable net assets at acquisition date. Goodwill recognized by CGU was $1 million


Illustration 4:Goodwill Impairment Test

Goodwill Identifiable net assets TotalCarrying amount 1,200,000 6,000,000 7,200,000

Recoverable amount 5,000,000

Impairment loss 1,200,000 1,000,000 2,200,000

Impairment loss borne by Parent and NCI 1,200,000 1,000,000 2,200,000


Explanatory notes:• Goodwill allocated to a CGU to enable comparison between carrying

amount of all assets of the unit and recoverable amount• Goodwill attributable to NCI is included under recognized goodwill (no

further adjustment is required)

Question (a)

Illustration 4:Goodwill Impairment Test

Goodwill Identifiable net assets Total Carrying amount 1,000,000 6,000,000 7,000,000

NCI's stet share of goodwill 250000 (20% x $1million/0.8) 250,000

Notionally adjusted carrying amount 1,250,000 6,000,000 7,250,000Recoverable amount 5,000,000Impairment loss 1,250,000 1,000,000 2,250,000

Impairment loss recognized 1000000 (80% x $1.25 million) 1,000,000 1,000,000


Question (b)

Explanatory notes:• Since comparison is done against the carrying amount of assets of a CGU,

goodwill is regrossed under alternative (b) to show theoretical goodwill as at date of acquisition

• NCI unrecognized share of goodwill is included

Conclusion


• Two sets of financial statements must be presented:

– Investor’s separate financial statements for the legal entity

– Consolidated financial statements for group of companies

• Although two sets of accounts exist, only one set of “books” has to be kept by

the legal entity

– Consolidation worksheets are used to prepare consolidated financial statement

• Summation of line items of the financial statements of parents and subsidiaries

• Incorporation of adjustments to eliminate and adjust intragroup transactions and balances

• Transactions and balances in consolidated financial statement reflect group’s perspective

Conclusion

• All business combinations are accounted for using the acquisition method – Entails an “asset substitution process”– Acquirer is deemed to have obtained control of all assets and liabilities of

acquiree.– Acquisition date is a critical economic event (exchange of economic

resources between acquirer and the former-owners)– Use of fair values to recognize assets and liabilities– Unrecognized intangible assets and contingent liabilities recognized if they

meet criteria in IFRS 3– NCI included as a component in equity


Conclusion


• Under the acquisition method:

– Consideration transferred = Fair value of (assets transferred + liabilities incurred + equity interests issued by acquirer + contingent consideration)

– Asset substitution process: Investment account is eliminated and substituted with:

• Subsidiary’s identifiable net assets; and

• Goodwill

– Goodwill = Fair value of (consideration transferred + non-controlling interests + acquirer’s previously held interest in the acquiree) – acquiree’s recognized net identifiable assets

advanced financial accounting: chapter 4

Documents