food for thoughts
Food for Thoughts
1.
ASC 805-10-55-2 Business combination an acquirer might obtain control of an acquire in variety of ways, cash, cash equivalents, or assets. 4million-acquisition costs.
ASC 805 – 30-25-5 The consideration the acquirer transfers in exchange for the acquire includes any asset or liability resulting from a contingent consideration arrangement. 20million- contingent consideration.
ASC 805-30-30-11 The portion of the fair-value based measure of the replacement award that is part of the consideration transferred in echange for the acquire equals the portion of the acquire award that is attributable to precombination service. 5million precombination services.
ASC 805-30-30-13 The portion that is attributed to postcombination sercive. 7million postcombination services.
40million + 70million = 110million + 20million = 130million + 5million = 135million consideration transferred.
2.
ASC 820-10-35-12 fair value if the asset is determined based on the price that would be received in a current transaction to sell the asset assuming that the asset would be used with other assets as a group and that those assets would be available to market participants.
In-Use
Land 21million + building/machinery 7million = In-Use 28 million
ASC 820-10-35-13 fair value of the asset is determined based on the price that would be received in a current transaction to sell the asset standalone basis.
In Exchange
Land to be used for residential subdivision 30million + auctioned off equipment 2million = In-Exchange 32 million.
Management should record the land and buildings in-exchange because it would give them a higher maximum profits from it.
3.
ASC 730-10-15-4f Research and development assets acquired in a business combination or an acquisition by a not-for-profit entity, If tangible and intangible assets acquired in that manner are used in research and development activities, they are recognized and measured at fair value in accordance with
1.
ASC 805-10-55-2 Business combination an acquirer might obtain control of an acquire in variety of ways, cash, cash equivalents, or assets. 4million-acquisition costs.
ASC 805 – 30-25-5 The consideration the acquirer transfers in exchange for the acquire includes any asset or liability resulting from a contingent consideration arrangement. 20million- contingent consideration.
ASC 805-30-30-11 The portion of the fair-value based measure of the replacement award that is part of the consideration transferred in echange for the acquire equals the portion of the acquire award that is attributable to precombination service. 5million precombination services.
ASC 805-30-30-13 The portion that is attributed to postcombination sercive. 7million postcombination services.
40million + 70million = 110million + 20million = 130million + 5million = 135million consideration transferred.
2.
ASC 820-10-35-12 fair value if the asset is determined based on the price that would be received in a current transaction to sell the asset assuming that the asset would be used with other assets as a group and that those assets would be available to market participants.
In-Use
Land 21million + building/machinery 7million = In-Use 28 million
ASC 820-10-35-13 fair value of the asset is determined based on the price that would be received in a current transaction to sell the asset standalone basis.
In Exchange
Land to be used for residential subdivision 30million + auctioned off equipment 2million = In-Exchange 32 million.
Management should record the land and buildings in-exchange because it would give them a higher maximum profits from it.
3.
ASC 730-10-15-4f Research and development assets acquired in a business combination or an acquisition by a not-for-profit entity, If tangible and intangible assets acquired in that manner are used in research and development activities, they are recognized and measured at fair value in accordance with