- 5 Marks
CR – Mar 2024 – Q4b – Business combinations and consolidation
Identify factors to consider when determining if reacquired rights constitute identifiable intangible assets in a business combination.
Question
An acquirer may reacquire a right that it had previously granted to the acquiree to use one or more of the acquirer’s recognised or unrecognised assets. Examples of such rights include a right to use the acquirer’s trade name under a franchise agreement or a right to use the acquirer’s technology under a technology licensing agreement. Such reacquired rights generally are identifiable intangible assets that the acquirer separately recognises from goodwill.
Required: Identify FOUR (4) factors that should be considered in deciding on whether reacquired rights constitute an identifiable intangible asset.
Find Related Questions by Tags, levels, etc.
- Tags: Business Combinations, IFRS 3, Intangible Assets, Reacquired Rights
- Level: Level 3
- Topic: Business combinations and consolidation
- Series: MAR 2024
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