IFRSBusinessCombination摘要.pptVIP

Successive share purchases ( e.g.) Investor acquires a 20 per cent ownership interest in Investee (a service company) on 1 January 20X1 for CU3,500,000 cash. At that date, the fair value of Investee’s identifiable assets is CU10,000,000, and the carrying amount of those assets is CU8,000,000. Investee has no liabilities or contingent liabilities at that date. The following shows Investee’s balance sheet at 1 January 20X1 together with the fair values of the identifiable assets: Successive share purchases Carrying amounts (cu) Fair values (cu) Cash and receivable 2,000,000 2,000,000 Land 6,000,000 8,000,000 8,000,000 10,000,000 Issued equity: 1,000,000 ordinary shares 5,000,000 Retained earnings 3,000,000 8,000,000 Successive share purchases During the year ended 31 December 20X1, Investee reports a profit of CU6,000,000 but does not pay any dividends. In addition, the fair value of Investee’s land increases by CU3,000,000 to CU11,000,000. However, the amount recognised by Investee in respect of the land remains unchanged at CU6,000,000. The following shows Investee’s balance sheet at 31 December 20X1 together with the fair values of the identifiable assets: Successive share purchases Carrying amounts (cu) Fair values (cu) Cash and receivable 8,000,000 8,000,000 Land 6,000,000 11,000,000 14,000,000 19,000,000 Issued equity: 1,000,000 ordinary shares 5,000,000 Retained earnings 9,000,000 14,000,000 Successive share purchases On 1 January 20X2, Investor acquires a further 60 per cent ownership interest in Investee for CU22,000,000 cash, thereby obtaining control. Before obtaining control, Investor does not have significant influence over Investee, and accounts for its initial 20 per cent investment at fair value with changes in value included in profit or loss. Investee’s ordinary shares have a quoted market price at 31 December 20X1 of CU30 per share Throughout the period 1 January 20X1 to 1 January 20X2, Investor’s issued equity was CU30,000,000.