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Coca-Cola-style scenario: an FMCG acquires an e-commerce company E and intends to KEEP the user base but Company E has historically had no intention to sell its customer list. Should the customer list be recognised as a separately identifiable intangible at the BC date?
ANo, because customer lists never qualify as intangibles in India
BNo — the acquiree's intention not to sell makes the list non-separable
CYes — separability is determined by capability, not intent; if the database could be transferred to a market participant, it is separable and recognised
DYes, but only if a market price for the list is observable
Answer & Solution
Correct answer: C. Yes — separability is determined by capability, not intent; if the database could be transferred to a market participant, it is separable and recognised
Separability is assessed by capability to transfer — to a market participant who could buy/sell/license/exchange the asset, irrespective of the entity's own intention. So the customer database is recognisable separately. (Ind AS 103 BC illustration 17.)
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