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CA Final Ind AS 103 — Reverse Acquisition Mechanics, Replacement Awards, Contingent vs Deferred Consideration & NCI Methods — practice questions
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Practice CA Final Ind AS 103 — Reverse Acquisition Mechanics, Replacement Awards, Contingent vs Deferred Consideration & NCI Methods in the app →Acquisition-related costs include all of the following EXCEPT:Under Ind AS 103, when an acquirer's share-based payment award REPLACES an acquiree's award that was issued beAn additional payment to a founder-shareholder of the acquiree is contingent on him/her continuing in employmeAn acquirer offers contingent consideration of 'higher of ₹35 lakh AND 25% of any excess profits over previousAn acquirer issues a replacement share-based award. Acquiree's original award: 4-year vesting, 2 years alreadyA reverse acquisition: BX is a larger entity which post-merger has 56% of the combined ABX Ltd. AX has 700k prProfessional Ltd. acquires 70% of Dynamic Ltd. by issuing 2,00,000 of its own shares (FV ₹40 each) in a 1:2 raContinuing the Professional/Dynamic example: PPE FV ₹350 lakh (BV ₹500 lakh), contingent liability ₹5 lakh (BVContinuing the example: NCI proportionate at 30% of ₹516.5 = ₹154.95; PC = ₹87.43 lakh (₹56 + deferred ₹28.93 In a reverse acquisition (legal acquirer ABX is shell; accounting acquirer BX is larger operating entity), theShyam Ltd. negotiates merger with Ram Ltd. Key dates: 9 Apr (start), 10 May (board authorisation), 15 May (offHindustan Unilever's merger of GSK CH (1 Apr 2020) shows total consideration ₹40,242 cr (18,46,23,812 shares ×HUL's GSK CH disclosures show TRANSACTION COST split as: ₹44 cr (related to issuance of shares) recognised agaHUL also acquired Horlicks IPR for ₹3,045 cr separately, plus ₹91 cr transaction cost. The accounting:HUL recognised Indemnification Asset of ₹608 cr against contingent tax liabilities of GSK CH (capped at USD 15