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CA Final Ind AS 103 — Closing Illustrations: Reverse Acquisition Consolidated BS, Contingent Consideration Classification, Transitory Common Control — practice questions
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Practice CA Final Ind AS 103 — Closing Illustrations: Reverse Acquisition Consolidated BS, Contingent Consideration Classification, Transitory Common Control in the app →Mr. Ram briefly held control over both entities A and B JUST BEFORE a transaction in which B acquires control An acquirer's obligation to pay contingent consideration is classified as EQUITY under Ind AS 32 when it requiContingent consideration classified as a FINANCIAL LIABILITY at acquisition is subsequently:A Ltd. acquires 100% of B Ltd. on 1 Apr 20X1. PC = 10 lakh A-shares at ₹20 FV + variable contingent consideratModify the above: contingent consideration is to be settled by a VARIABLE number of shares with TOTAL FV equalReverse acquisition: legal acquirer Entity A issues 150 shares to take over Entity B; ex-B shareholders end upContinuing the reverse acquisition: in the consolidated balance sheet, Issued Equity is presented as:Goodwill impairment under NCI-at-FV vs NCI-at-proportionate-share methods: share exchange 12,000 × 75% × 2/3 ×A holds 5% in B at FVOCI (Ind AS 109 election). FV unrealised gain in OCI = ₹5,000; carrying amount ₹1,05,000.Bargain purchase: Alpha acquires 80% of Beta. Beta's identifiable net assets (₹500 assets − ₹100 liab) = ₹400 F acquired G. After acquisition, F's loan to G's customer B was provisionally valued at FV. SCENARIO 1: post-aWhen the acquirer measures NCI at the FAIR VALUE method vs the PROPORTIONATE method, the differences flow throConsider 2 lakh acquirer shares issued as contingent consideration with FV ₹25 lakh at acquisition. Target IS Identify the statement about reverse acquisition consolidated FS that is INCORRECT.An acquirer takes control on 1 Nov 20X1. Cash consideration ₹59 lakh; 1 lakh shares × ₹10 FV = ₹10 lakh; conti