Non-current Assets Held for Sale and Discontinued Operations

The acquirer shall, at the acquisition date, allocate the cost of a business combination by recognising the acquiree’s identifiable assets, liabilities and contingent liabilities that satisfy the recognition criteria, at their fair values at that date, except for noncurrent assets (or disposal groups) that are classified as held for sale in accordance with IND AS105, Non-current Assets Held for Sale and Discontinued Operations,
which shall be recognised at fair value less costs to sell.


Comments

Post a Comment

Popular posts from this blog

Section 53A of the Transfer of Property Act

Image
The method adopted by the assessee, therefore,cannot be regarded to comply with the ownership so as to get an enforceable right to receive the balance of sale consideration, the question of applying Section 53A of the Transfer of Property Act would not arise so as to recognise the revenue before actual registration. Recognition/identification of income under the Income-tax Act 1961 is attainable by several methods of accounting. Project completion method [PCM] is one such method.
Read more

Transfer of all significant risks and rewards of ownership

Image
The case of builders, undertaking construction on own account, is more appropriately covered by AS-9. The question, therefore, reduces to as to which of the two methods is, on facts of the case,in consonance with AS-9. The said standard stipulates the basic conditions that should obtain if the income can be said to have accrued. The first is the transfer of all significant risks and rewards of ownership. Income arises on exchange. Risk and reward are incidents of ownership, income, thus, can be said to have accrued when there has been i.e., given the binding legal contract, transfer of these incidents, wholly or substantially so.
Read more

Reverse acquisition

Image
Reverse acquisition takes place when a private entity wants to become a public entity but does not want to register its equity shares. In such case,private entity approaches a public entity,the one which is listed, to acquire its (private entity’s) equity interests in exchange for the equity interests of the public entity In a reverse acquisition, the entity issuing equity interests is legally the acquirer, but for accounting purposes is considered the acquiree. Accounting for business combination is done from the perspective of accounting acquirer and not legal acquirer.
Read more