Financial Reporting and Ethics - The Institute of Chartered ...

ACCOUNTING STANDARDS(v)(vi)(vii)whether or not they had been previously recognized inthe acquiree’s financial statements:! In the case of an asset other than an intangibleasset, it is probable that any associated futureeconomic benefits will flow to the acquirer, and itsvalue can be measured reliably;! In the case of a liability other than a contingentliability, it is probable that an outflow of resourcesembodying economic benefits will be required tosettle the obligation, and its value can be measuredreliably;! In the case of an intangible asset or a contingentliability, its value can be measured reliably.they require the identifiable assets, liabilities andcontingent liabilities that satisfy the above recognitioncriteria to be measured initially by the acquirer at theirfair values at the acquisition date irrespective of the extentof any non-controlling interest;they require goodwill acquired in a business combinationto be recognized by the acquirer as an asset from theacquisition date, initially measured as the excess of thecost of the business combination over the acquirer’sinterest in the net value of the acquiree’s identifiableassets, liabilities and contingent liabilities.they require disclosure of information that enables usersof an entity’s financial statements to evaluate the natureand financial effect of:! Business combinations that were effected duringthe period;! Business combinations that were effected after thebalance sheet date but before the financialstatements are authorized for issue; and! Some business combinations that enable users ofan entity’s financial statements to evaluatechanges in the carrying amount of goodwill duringthe period.(d)The two Standards include specific requirements clarifying thatthe value of an intangible asset acquired in a businesscombination can normally be measured with sufficient reliabilityto qualify for recognition separately from goodwill. If anintangible asset acquired in a business combination has a finiteuseful life, there is a presumption that its value can be measuredreliably.107