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HUL also acquired Horlicks IPR for ₹3,045 cr separately, plus ₹91 cr transaction cost. The accounting:
AAccount as an ASSET ACQUISITION under Ind AS 38: capitalise ₹3,045 cr + ₹91 cr transaction cost = ₹3,136 cr to intangible asset
BTreat as part of the BC consideration; expense the transaction cost
CTreat as goodwill
DTreat as a separate joint arrangement
Answer & Solution
Correct answer: A. Account as an ASSET ACQUISITION under Ind AS 38: capitalise ₹3,045 cr + ₹91 cr transaction cost = ₹3,136 cr to intangible asset
Acquisition of a standalone intangible (Horlicks IPR from GSK Plc, an unrelated party) is an asset acquisition under Ind AS 38, NOT a business combination. Transaction costs in an asset acquisition are capitalised — opposite of the BC rule.
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