{"entries":[{"key":"LX.IFRS3.000001","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.OVERVIEW"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"BC_OR_NOT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000001","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-scope"},"references":["IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"Orvane SA buys 75% of the shares of an operating video game studio, with its team and licences. How is the transaction treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: obtaining control of a business triggers the acquisition method, even without owning 100% of the shares (IFRS 3).","es":""},"common_error":{"fr":"","en":"Reserving IFRS 3 for purchases of 100% of the shares.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an asset acquisition, because Orvane does not buy 100% of the shares","es":""},"correct":false,"feedback":{"fr":"","en":"Owning all the shares is not required: obtaining control is enough (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"As a common control combination, because the studio belonged to a private fund","es":""},"correct":false,"feedback":{"fr":"","en":"Common control requires the same controlling party before and after, which is not the case here (IFRS 3, para. B1).","es":""}},{"id":"C","text":{"fr":"","en":"As the formation of a joint arrangement with the studio's former shareholders","es":""},"correct":false,"feedback":{"fr":"","en":"Orvane controls the studio: this is not a joint arrangement (IFRS 3, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"As a business combination: Orvane obtains control of a business","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000002","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.ASSET_ACQUISITION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"REALESTATE","tested_point":"ASSET_ACQ_NO_GOODWILL","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000001","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-asset"},"references":["IFRS 3 §2","IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Halvik SA buys an empty warehouse; since the transaction is called an acquisition, it recognises goodwill for the difference between the price and the value of the warehouse.","es":""},"explanation":{"fr":"","en":"An empty warehouse is not a business: an asset acquisition, without goodwill (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Basing the treatment on the word \"acquisition\".","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000003","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.OVERVIEW","IFRS3.SCOPE.ASSET_ACQUISITION","IFRS3.SCOPE.COMMON_CONTROL"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SCOPE_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000001","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-scope"},"references":["IFRS 3 §2","IFRS 3 §B7","IFRS 3 §B1"],"exercise":{"prompt":{"fr":"","en":"Sort each transaction: IFRS 3 acquisition method, or outside that method.","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquisition method requires obtaining control of a business; asset purchases and common control are excluded (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Sorting by the number of items bought rather than by the nature of the set.","es":""},"format":"CLASSIFICATION","categories":[{"id":"acq","text":{"fr":"","en":"Acquisition method (IFRS 3)","es":""}},{"id":"out","text":{"fr":"","en":"Outside the acquisition method","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Purchase of 60% of an operating bakery chain, with its shops and employees","es":""},"category":"acq"},{"id":"i2","text":{"fr":"","en":"Purchase of a bare plot of land intended for a future factory","es":""},"category":"out"},{"id":"i3","text":{"fr":"","en":"Contribution by the parent, within its group, of the shares of one subsidiary to another subsidiary it durably controls","es":""},"category":"out"},{"id":"i4","text":{"fr":"","en":"Purchase of a majority of the shares of an analysis laboratory, with its teams, methods and customers","es":""},"category":"acq"},{"id":"i5","text":{"fr":"","en":"Purchase of ten new vehicles from a dealer","es":""},"category":"out"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000004","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.COMMON_CONTROL"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"AUTOMOTIVE","tested_point":"COMMON_CONTROL_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000001","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-common-control"},"references":["IFRS 3 §B1","IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"Analyse the reorganisation of the Garnel group.","es":""},"explanation":{"fr":"","en":"Rule to remember: the same controlling party before and after, with no transitory control: outside the scope of IFRS 3 (IFRS 3, para. B1).","es":""},"common_error":{"fr":"","en":"Treating an internal reorganisation as an acquisition.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Garnel Holding has owned 100% of Garnel Pièces and Garnel Services for eight years. To simplify the organisation chart, it has Garnel Pièces acquire the shares of Garnel Services in exchange for new shares. No disposal plan exists; the board has confirmed that Garnel Holding will keep control of both entities after the transaction.","es":""},"parts":[{"prompt":{"fr":"","en":"Who controls the combined entities before and after the transaction?","es":""},"explanation":{"fr":"","en":"Rule to remember: in a common control combination, the same party controls before and after (IFRS 3, para. B1).","es":""},"common_error":{"fr":"","en":"Reasoning entity by entity without going up to ultimate control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Garnel Holding, which controls both entities before and after","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Garnel Pièces, which issues the new shares, controls Garnel Services after the transaction","es":""},"correct":false,"feedback":{"fr":"","en":"At group level, the same party controls everything before and after: the parent (IFRS 3, para. B1).","es":""}},{"id":"C","text":{"fr":"","en":"The former shareholders of Garnel Services, who receive shares","es":""},"correct":false,"feedback":{"fr":"","en":"Garnel Services was already owned by the parent: there are no outside shareholders (IFRS 3, para. B1).","es":""}},{"id":"D","text":{"fr":"","en":"Nobody: control disappears during the exchange of shares","es":""},"correct":false,"feedback":{"fr":"","en":"Ultimate control is not interrupted during the transaction (IFRS 3, para. B1).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Is common control transitory on the facts described?","es":""},"explanation":{"fr":"","en":"Rule to remember: whether control is transitory is a judgement, with no stated duration (IFRS 3, para. B1).","es":""},"common_error":{"fr":"","en":"Looking for a numerical threshold in the standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because the standard sets a minimum holding period of five years","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no duration; it is a judgement based on the facts (IFRS 3, para. B1).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, because an issue of shares is temporary by nature","es":""},"correct":false,"feedback":{"fr":"","en":"An issue of shares is not a sign of transitory control; disposal plans would be (IFRS 3, para. B1).","es":""}},{"id":"C","text":{"fr":"","en":"No: no disposal plan exists and the board confirms that control will be maintained","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It depends on the percentage of shares exchanged, which must exceed half, assessed at the date the contract is signed","es":""},"correct":false,"feedback":{"fr":"","en":"No exchange percentage conditions whether control is transitory (IFRS 3, para. B1).","es":""}}],"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"In this case, Garnel Pièces applies the IFRS 3 acquisition method to the acquisition of Garnel Services.","es":""},"explanation":{"fr":"","en":"A common control combination is out of scope: the acquisition method does not apply (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Applying IFRS 3 to an internal reorganisation.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000005","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"BC_DEFINITION_BLANKS","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IFRS3.000001","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"understand"},"references":["IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"Complete the definition.","es":""},"explanation":{"fr":"","en":"Rule to remember: a combination requires control of a business and follows the acquisition method (IFRS 3).","es":""},"common_error":{"fr":"","en":"Confusing control with ownership of the entire capital.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"A business combination is a transaction in which the acquirer obtains {{ctrl}} of one or more {{objet}}, accounted for under the {{methode}} method.","es":""},"blanks":[{"id":"ctrl","mode":"CHOICE","choices":[{"id":"CONTROL","text":{"fr":"","en":"control","es":""}},{"id":"SIGN","text":{"fr":"","en":"majority voting right","es":""}},{"id":"OWN","text":{"fr":"","en":"entire capital","es":""}}],"answer":"CONTROL"},{"id":"objet","mode":"CHOICE","choices":[{"id":"AST","text":{"fr":"","en":"individual assets","es":""}},{"id":"BUS","text":{"fr":"","en":"businesses","es":""}},{"id":"LIA","text":{"fr":"","en":"liabilities alone","es":""}}],"answer":"BUS"},{"id":"methode","mode":"CHOICE","choices":[{"id":"EQ","text":{"fr":"","en":"equity accounting","es":""}},{"id":"FV","text":{"fr":"","en":"overall fair value","es":""}},{"id":"ACQ","text":{"fr":"","en":"acquisition","es":""}}],"answer":"ACQ"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000006","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.ASSET_ACQUISITION","IFRS3.SCOPE.OVERVIEW"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"ASSET_ACQ_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000001","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-asset"},"references":["IFRS 3 §2","IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"A colleague summarises the consequences of the boundary between a combination and an asset acquisition. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: the nature of the set acquired, not the form of the contract, decides the treatment (IFRS 3, para. B7).","es":""},"common_error":{"fr":"","en":"Relying on the legal vehicle of the purchase.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"A business combination may give rise to goodwill.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"In a business combination, acquisition fees are expensed.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The decisive criterion is the legal form of the purchase, shares or assets.","es":""},"erroneous":true,"correction":{"fr":"","en":"The decisive criterion is the nature of the set acquired: business or not (IFRS 3, para. B7).","es":""}},{"id":"S4","text":{"fr":"","en":"An asset acquisition is accounted for under the standard for each asset.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000007","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.JOINT_ARRANGEMENTS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"JOINT_ARRANGEMENT_SCOPE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000001","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-joint"},"references":["IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"Two operators create a jointly held company, owned in equal shares and with its own team. Which statement is correct for the financial statements of that company?","es":""},"explanation":{"fr":"","en":"Rule to remember: the formation of a joint arrangement is out of scope, in the arrangement's financial statements (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Extending the exclusion to later acquisitions or to only some types of arrangements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The creation of the company is a combination measured at fair value under the acquisition method, in line with group policy","es":""},"correct":false,"feedback":{"fr":"","en":"The formation of a joint arrangement is excluded from IFRS 3 (IFRS 3, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"The exclusion covers joint ventures, but not joint operations","es":""},"correct":false,"feedback":{"fr":"","en":"The 2011-2013 improvements cover the formation of all types of joint arrangements (IFRS 3, para. 2).","es":""}},{"id":"C","text":{"fr":"","en":"The formation of the joint arrangement is outside the scope of IFRS 3 in its own financial statements","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The exclusion also applies to each operator for a later acquisition of a business","es":""},"correct":false,"feedback":{"fr":"","en":"The exclusion covers the formation, not later acquisitions of businesses (IFRS 3, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000008","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.COMMON_CONTROL","IFRS3.SCOPE.JOINT_ARRANGEMENTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"TRANSITORY_CONTROL_FILE","difficulty":"EXPERT","estimated_time_s":80,"lesson_id":"LS.IFRS3.000001","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"judgment"},"references":["IFRS 3 §B1","IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"A group combines a subsidiary with another group entity a few months before selling it to a third party. Which items in the file best support a conclusion on whether common control is transitory? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: whether control is transitory rests on documented facts, with no numerical threshold (IFRS 3, para. B1).","es":""},"common_error":{"fr":"","en":"Importing a duration or price threshold that does not exist in the standard.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The board decisions and the sale mandate, with their timetable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The actual duration of joint holding before the planned disposal","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A duration threshold taken from the practice of another group in the same sector","es":""},"correct":false,"feedback":{"fr":"","en":"No duration threshold exists in the standard; another group's practice does not replace it (IFRS 3, para. B1).","es":""}},{"id":"D","text":{"fr":"","en":"The planned sale price, which determines control","es":""},"correct":false,"feedback":{"fr":"","en":"The price does not determine the nature of control; it can only shed light on intentions (IFRS 3, para. B1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000009","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.ELEMENTS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"FOOD","tested_point":"INPUT_PROCESS_OUTPUT","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000002","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"understand"},"references":["IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"A company buys a cheese dairy: the maturing cellars, the master cheesemaker and his five cheese-maturers, the maturing method and contracts with grocers. What is the process?","es":""},"explanation":{"fr":"","en":"Rule to remember: processes are the methods applied to the inputs to create outputs (IFRS 3, para. B7).","es":""},"common_error":{"fr":"","en":"Confusing inputs (resources) with processes (methods).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The maturing cellars, which are economic resources","es":""},"correct":false,"feedback":{"fr":"","en":"The cellars are inputs (resources); the process is the method applied to the inputs (IFRS 3, para. B7).","es":""}},{"id":"B","text":{"fr":"","en":"The sales contracts with the grocers, which bring in the revenue","es":""},"correct":false,"feedback":{"fr":"","en":"Customer contracts are inputs or outputs, not the process of creation (IFRS 3, para. B7).","es":""}},{"id":"C","text":{"fr":"","en":"The monthly invoicing of the grocers by the administrative department","es":""},"correct":false,"feedback":{"fr":"","en":"Billing is generally not a process that creates outputs (IFRS 3, para. B7).","es":""}},{"id":"D","text":{"fr":"","en":"The maturing method applied by the cheese-maturers to the cheeses","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000010","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.ELEMENTS"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"ELEMENTS_SORTING","difficulty":"BEGINNER","estimated_time_s":90,"lesson_id":"LS.IFRS3.000002","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-elements"},"references":["IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Sort each element of a furniture store acquired.","es":""},"explanation":{"fr":"","en":"Rule to remember: inputs = resources; processes = methods that create outputs; accounting, billing and payroll generally are not (IFRS 3, para. B7).","es":""},"common_error":{"fr":"","en":"Counting administrative tasks as output-creating processes.","es":""},"format":"CLASSIFICATION","categories":[{"id":"inp","text":{"fr":"","en":"Input (economic resource)","es":""}},{"id":"proc","text":{"fr":"","en":"Process that creates outputs","es":""}},{"id":"adm","text":{"fr":"","en":"Administrative activity, generally not a process","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The retail premises and shelving","es":""},"category":"inp"},{"id":"i2","text":{"fr":"","en":"The system of advice and order customisation by the sales staff","es":""},"category":"proc"},{"id":"i3","text":{"fr":"","en":"Bookkeeping and payroll preparation","es":""},"category":"adm"},{"id":"i4","text":{"fr":"","en":"The stock of furniture","es":""},"category":"inp"},{"id":"i5","text":{"fr":"","en":"The restocking and purchasing method with manufacturers","es":""},"category":"proc"},{"id":"i6","text":{"fr":"","en":"Sending invoices to business customers","es":""},"category":"adm"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000011","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"PHARMA","tested_point":"OUTPUTS_NOT_REQUIRED","difficulty":"INTERMEDIATE","estimated_time_s":35,"lesson_id":"LS.IFRS3.000002","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"understand"},"references":["IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"A set acquired with no outputs at the acquisition date can nevertheless be a business if its inputs and processes can contribute to creating outputs.","es":""},"explanation":{"fr":"","en":"Since the 2018 amendments, outputs are no longer required: the ability to contribute to creating them is enough (IFRS 3, para. B7).","es":""},"common_error":{"fr":"","en":"Applying the former requirement for existing outputs.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000012","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.SUBSTANTIVE_PROCESS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"REVENUE_CONTINUITY","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000002","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-substantive"},"references":["IFRS 3 §B8","IFRS 3 §B8A","IFRS 3 §B12B"],"exercise":{"prompt":{"fr":"","en":"Zelmar SA buys a portfolio of 3,000 subscriptions to an online magazine, generating regular revenue. No journalist, platform or editorial method is taken over. What does the analysis conclude?","es":""},"explanation":{"fr":"","en":"Rule to remember: continuity of revenue is not enough by itself to conclude that a substantive process was acquired (IFRS 3, para. B8A).","es":""},"common_error":{"fr":"","en":"Confusing a contract portfolio with a business.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The set is a business, because regular revenue proves the existence of a process, which would reduce the risk of differences","es":""},"correct":false,"feedback":{"fr":"","en":"Continuity of revenue does not by itself indicate the acquisition of a substantive process (IFRS 3, para. B8A).","es":""}},{"id":"B","text":{"fr":"","en":"Regular revenue is not enough; without substantive inputs and processes taken over, there is no business","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The set is a business as soon as the number of subscriptions exceeds one thousand","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no number of contracts as a criterion (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"The analysis is impossible until the next year's outputs are known","es":""},"correct":false,"feedback":{"fr":"","en":"The analysis is made at the acquisition date, with the facts known at that date (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000013","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.SUBSTANTIVE_PROCESS","IFRS3.BUSINESS.ELEMENTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PHARMA","tested_point":"PRE_REVENUE_TARGET","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000002","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-substantive"},"references":["IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Conclude on the nature of the set acquired by Istrel.","es":""},"explanation":{"fr":"","en":"Rule to remember: without outputs, a critical process and an organised workforce make the business (IFRS 3).","es":""},"common_error":{"fr":"","en":"Waiting for revenue before concluding.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Istrel SA takes over Lumen Bio, a young research company. Lumen Bio has no revenue yet. Istrel acquires a patented compound, an equipped laboratory, eighteen researchers and technicians organised in project teams, and their trial protocols, which are essential to move the compound towards a product.","es":""},"parts":[{"prompt":{"fr":"","en":"Which resources are inputs?","es":""},"explanation":{"fr":"","en":"Rule to remember: inputs are the economic resources acquired (IFRS 3, para. B7).","es":""},"common_error":{"fr":"","en":"Classing future revenue among the resources acquired.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The patented compound, the laboratory and the research teams","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The trial protocols alone, because the rest is not a resource","es":""},"correct":false,"feedback":{"fr":"","en":"The compound, the laboratory and the teams are also economic resources (IFRS 3, para. B7).","es":""}},{"id":"C","text":{"fr":"","en":"The expected future revenue from the compound, once the product is marketed, estimated by the acquirer's management at the acquisition date","es":""},"correct":false,"feedback":{"fr":"","en":"Future revenue is a possible output, not a resource acquired today (IFRS 3, para. B7).","es":""}},{"id":"D","text":{"fr":"","en":"Istrel's group accounting services, which will manage the laboratory","es":""},"correct":false,"feedback":{"fr":"","en":"These services are not acquired and are generally not output-creating processes (IFRS 3, para. B7).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Does the absence of revenue prevent concluding that there is a business?","es":""},"explanation":{"fr":"","en":"Rule to remember: without outputs, a critical process and an acquired organised workforce are enough to make it substantive (IFRS 3).","es":""},"common_error":{"fr":"","en":"Refusing business status to companies without revenue.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, because existing outputs are required for a business","es":""},"correct":false,"feedback":{"fr":"","en":"Outputs are no longer required; what counts is the ability to create them (IFRS 3, para. B7).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, because whether a process is substantive depends on the profitability already achieved, following the most common practice in the profession","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not link a process being substantive to profitability (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"No: without outputs, the process is substantive if it is critical and an organised workforce is acquired","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No, provided the compound has been patented for more than five years","es":""},"correct":false,"feedback":{"fr":"","en":"No patent age is a criterion of the definition (IFRS 3).","es":""}}],"id":"p2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"What conclusion does Istrel reach for this transaction?","es":""},"explanation":{"fr":"","en":"Rule to remember: a set with an input and a substantive process is a business, even without outputs (IFRS 3).","es":""},"common_error":{"fr":"","en":"Reducing the conclusion to the existence of sales.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Asset acquisition, because no output is sold yet","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of outputs does not lead to an asset acquisition conclusion (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"Business combination, subject to the acquirer's control: acquisition method","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Common control combination, because Lumen Bio is a young company held by an investment fund","es":""},"correct":false,"feedback":{"fr":"","en":"The company's age has no link with common control (IFRS 3, para. B1).","es":""}},{"id":"D","text":{"fr":"","en":"Formation of a joint arrangement, because research requires several teams","es":""},"correct":false,"feedback":{"fr":"","en":"Several teams do not create a joint arrangement (IFRS 3, para. 2).","es":""}}],"id":"p3","dimension":"ANALYSIS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000014","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.SUBSTANTIVE_PROCESS"],"dimension":"APPLICATION","format":"MATCHING","context":"LOGISTICS","tested_point":"SUBSTANTIVE_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS3.000002","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-substantive"},"references":["IFRS 3 §B8","IFRS 3 §B8A","IFRS 3 §B12B","IFRS 3 §B12C"],"exercise":{"prompt":{"fr":"","en":"Match each situation with the conclusion it calls for on the process acquired.","es":""},"explanation":{"fr":"","en":"Rule to remember: without outputs: critical process and organised workforce; with outputs, continuity of revenue is not enough (IFRS 3).","es":""},"common_error":{"fr":"","en":"Treating situations with and without outputs alike.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"No outputs: critical method and organised team taken over","es":""}},{"id":"L2","text":{"fr":"","en":"No outputs: critical method documented, no employee taken over","es":""}},{"id":"L3","text":{"fr":"","en":"With outputs: recurring revenue, no input or process taken over","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Substantive process acquired","es":""}},{"id":"R2","text":{"fr":"","en":"No substantive process: organised workforce missing","es":""}},{"id":"R3","text":{"fr":"","en":"Revenue insufficient to conclude there is a business","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000015","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.CONCENTRATION_TEST"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"REALESTATE","tested_point":"CONCENTRATION_SINGLE_ASSET","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000002","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-concentration"},"references":["IFRS 3 §B7A","IFRS 3 §B7B"],"exercise":{"prompt":{"fr":"","en":"Brevane SA considers applying the concentration test to the purchase of a company holding a hotel residence: the land and the building make up substantially all of the fair value of the gross assets. What can it conclude?","es":""},"explanation":{"fr":"","en":"Rule to remember: land and building form a single identifiable asset; a test that is met concludes there is no business (IFRS 3).","es":""},"common_error":{"fr":"","en":"Splitting the land from the building to test concentration.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The land and the building are two separate assets, so the test cannot be met","es":""},"correct":false,"feedback":{"fr":"","en":"Inseparable assets, such as land and its building, count as a single asset (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"The test is met and the set is a business, because it contains a high-value asset","es":""},"correct":false,"feedback":{"fr":"","en":"A test that is met leads to concluding that the set is not a business (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"The test is mandatory for Brevane for its acquisitions in the year","es":""},"correct":false,"feedback":{"fr":"","en":"The test is optional and chosen transaction by transaction (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"The test is met and the set is not a business, without further analysis","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000016","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.CONCENTRATION_TEST","IFRS3.BUSINESS.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","format":"ERROR_SPOT","context":"GENERIC","tested_point":"CONCENTRATION_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000002","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-concentration"},"references":["IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"A trainee summarises the concentration test. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: a concentration test that is met removes the need for further analysis (IFRS 3).","es":""},"common_error":{"fr":"","en":"Keeping the analysis of processes after a test that is met.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The test is chosen transaction by transaction.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The test concerns the fair value of the gross assets acquired.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"If the test is met, the acquirer must then analyse the processes before concluding.","es":""},"erroneous":true,"correction":{"fr":"","en":"A test that is met allows the acquirer to conclude without further analysis that the set is not a business (IFRS 3).","es":""}},{"id":"S4","text":{"fr":"","en":"A group of similar identifiable assets can be enough to meet the test.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000017","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.IDENTIFICATION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"TELECOM","tested_point":"ACQUIRER_BY_CONTROL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-acquirer"},"references":["IFRS 3 §6","IFRS 3 §7"],"exercise":{"prompt":{"fr":"","en":"Orlane SA buys 65% of the voting rights of Tavel SA and appoints the majority of its board. Tavel issues new shares to fund the transaction. Who is the acquirer?","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquirer is the entity that obtains control (IFRS 3, para. 7).","es":""},"common_error":{"fr":"","en":"Identifying the acquirer by the share issue.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Tavel, because it issues the shares that fund the transaction","es":""},"correct":false,"feedback":{"fr":"","en":"The issuer is not necessarily the acquirer; control decides (IFRS 3, para. B15).","es":""}},{"id":"B","text":{"fr":"","en":"Orlane, which obtains control of Tavel","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Neither, because the transaction covers part of the voting rights, not the whole","es":""},"correct":false,"feedback":{"fr":"","en":"Obtaining control is enough, without owning all (IFRS 3, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"Tavel, because it is the entity that keeps its legal personality","es":""},"correct":false,"feedback":{"fr":"","en":"Legal personality does not designate the acquirer; control does (IFRS 3, para. 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000018","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.IDENTIFICATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ISSUER_NOT_ACQUIRER","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-acquirer"},"references":["IFRS 3 §6","IFRS 3 §7"],"exercise":{"prompt":{"fr":"","en":"In a combination carried out through an exchange of shares, the entity that issues the shares is the acquirer.","es":""},"explanation":{"fr":"","en":"The issuer is not always the acquirer: control designates the acquirer (IFRS 3, paras. 7 and B15).","es":""},"common_error":{"fr":"","en":"Equating the share issuer with the acquirer.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000019","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.ACQUISITION_DATE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"DATE_WRITTEN_AGREEMENT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-date"},"references":["IFRS 3 §8","IFRS 3 §9"],"exercise":{"prompt":{"fr":"","en":"The contract for Valtor SA's purchase of Kestrel SA is signed on 5 May. It provides that control passes to Valtor on 1 June, the date it takes over management; payment and closing take place on 30 June. What is the acquisition date?","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquisition date is the date control is obtained (IFRS 3, paras. 8 and 9).","es":""},"common_error":{"fr":"","en":"Using the closing date without reading the written agreement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"5 May, the signing date, which binds the parties definitively","es":""},"correct":false,"feedback":{"fr":"","en":"Signing is not the moment control is obtained (IFRS 3, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"30 June, the payment date, which is the closing of the transaction","es":""},"correct":false,"feedback":{"fr":"","en":"Closing is the default date, but the written agreement here sets earlier control (IFRS 3, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"1 June, the date Valtor obtains control","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The average date of the three events, to smooth the gap between them","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no average date; it uses the date control is obtained (IFRS 3, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000020","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.IDENTIFICATION","IFRS3.ACQUIRER.ACQUISITION_DATE"],"dimension":"APPLICATION","format":"MINI_CASE","context":"LOGISTICS","tested_point":"ACQUIRER_AND_DATE_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"example"},"references":["IFRS 3 §6","IFRS 3 §7","IFRS 3 §8","IFRS 3 §9"],"exercise":{"prompt":{"fr":"","en":"Determine the acquirer and the acquisition date for the takeover of Lormand.","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquirer obtains control at the acquisition date, at which everything is measured (IFRS 3, para. 8).","es":""},"common_error":{"fr":"","en":"Using the signing date for measurement.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"On 12 September, Brevane SA signs an agreement to acquire 100% of Lormand SA, a carrier. The agreement provides for control to pass when the consideration is paid, which happens on 4 November. On 20 October, a third party challenges the contract before a court, without effect on the transfer. No other written agreement changes the date control passes.","es":""},"parts":[{"prompt":{"fr":"","en":"Which entity is the acquirer?","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquirer is the entity that obtains control (IFRS 3, para. 7).","es":""},"common_error":{"fr":"","en":"Confusing the entity that keeps its activity with the one that controls.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Brevane, which obtains control of Lormand","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Lormand, because it keeps its teams and customers","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping its teams does not give control of the other entity (IFRS 3, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"The third party challenging the contract, because it affects the transaction","es":""},"correct":false,"feedback":{"fr":"","en":"Challenging a contract does not give control of the entity (IFRS 3, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"Lormand's former owners, who stay in charge until payment","es":""},"correct":false,"feedback":{"fr":"","en":"The former owners give up control; they do not obtain it (IFRS 3, para. 7).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What is the acquisition date?","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquisition date follows the obtaining of control (IFRS 3, paras. 8 and 9).","es":""},"common_error":{"fr":"","en":"Defaulting to the signing date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"12 September, the date the agreement is signed","es":""},"correct":false,"feedback":{"fr":"","en":"Control does not pass at signing according to the agreement (IFRS 3, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"4 November, the date of payment and of control passing","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"20 October, the date of the court challenge","es":""},"correct":false,"feedback":{"fr":"","en":"The challenge is a fact after signing, with no effect on the control date (IFRS 3, para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"At Brevane's choice between signing and payment, by accounting option","es":""},"correct":false,"feedback":{"fr":"","en":"The date is not an option: it follows the obtaining of control (IFRS 3, para. 8).","es":""}}],"id":"p2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"Lormand's assets and liabilities are measured at fair value as at 12 September.","es":""},"explanation":{"fr":"","en":"Everything is measured at the acquisition date, here 4 November (IFRS 3, para. 8).","es":""},"common_error":{"fr":"","en":"Measuring at the signing date.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000021","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.INDICATORS"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"MEDIA","tested_point":"INDICATORS_WEIGHING","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-indicators"},"references":["IFRS 3 §B15"],"exercise":{"prompt":{"fr":"","en":"Two press groups of similar size merge through an exchange of shares; the control guidance does not clearly designate the acquirer. Which items are indicators to weigh? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: relative voting rights and management composition are acquirer indicators (IFRS 3, para. B15).","es":""},"common_error":{"fr":"","en":"Using form items such as the name or head office.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The share of voting rights the owners of each group will hold in the combined entity","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Each group's ability to appoint or remove the majority of the combined entity's directors","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The trade name chosen for the combined entity","es":""},"correct":false,"feedback":{"fr":"","en":"The name is not an acquirer indicator (IFRS 3, para. B15).","es":""}},{"id":"D","text":{"fr":"","en":"The location of the head office, chosen for tax reasons","es":""},"correct":false,"feedback":{"fr":"","en":"A head office set for tax reasons does not designate the acquirer (IFRS 3, para. B15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000022","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IFRS10"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"POST_CONTROL_PURCHASE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-ifrs10"},"references":["IFRS 3 §7"],"exercise":{"prompt":{"fr":"","en":"Two years after taking control of Dalmar SA, Fenmor SA buys a further 8% of the capital from a minority shareholder. Fenmor keeps control. What is the treatment?","es":""},"explanation":{"fr":"","en":"Rule to remember: after control is obtained, changes in ownership without loss of control are equity transactions (IFRS 10).","es":""},"common_error":{"fr":"","en":"Recognising goodwill or profit or loss on a purchase of minority holdings.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A new step acquisition, with remeasurement of the interest already held","es":""},"correct":false,"feedback":{"fr":"","en":"With no new control, there is no new combination or remeasurement (IFRS 10; pointer).","es":""}},{"id":"B","text":{"fr":"","en":"Additional goodwill equal to the difference between the price paid and the carrying amount acquired","es":""},"correct":false,"feedback":{"fr":"","en":"The difference goes to equity: no new goodwill arises (IFRS 10; pointer).","es":""}},{"id":"C","text":{"fr":"","en":"A gain or loss in profit or loss, equal to the difference between the price and the fair value of the percentage","es":""},"correct":false,"feedback":{"fr":"","en":"Without loss of control, no profit or loss is recognised on these transactions (IFRS 10; pointer).","es":""}},{"id":"D","text":{"fr":"","en":"A treatment in equity: a transaction between shareholders, with no goodwill or profit or loss","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000023","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.REVERSE.ACCOUNTING_ACQUIRER"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"REVERSE_ACQUIRER_ID","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-reverse"},"references":["IFRS 3 §B19"],"exercise":{"prompt":{"fr":"","en":"A listed shell company, Sorvane SA, issues new shares to the owners of Kelda SA, an operating business, in exchange for their Kelda shares. Kelda's owners then hold the majority of the voting rights of the whole. Who is the accounting acquirer?","es":""},"explanation":{"fr":"","en":"Rule to remember: in a reverse acquisition, the accounting acquirer is the entity whose owners obtain control (IFRS 3, para. B19).","es":""},"common_error":{"fr":"","en":"Taking the issuer as the accounting acquirer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Kelda, whose owners obtain control of the combined entity","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Sorvane, because it issues the shares and remains the listed company","es":""},"correct":false,"feedback":{"fr":"","en":"The issuer (legal acquirer) is here the accounting acquiree, because Kelda's owners take control (IFRS 3, para. B19).","es":""}},{"id":"C","text":{"fr":"","en":"Neither: a reverse acquisition rules out the notion of an acquirer, the combined entity being presented with no designated acquirer","es":""},"correct":false,"feedback":{"fr":"","en":"A reverse acquisition does have an acquirer, an accounting one and not a legal one (IFRS 3, para. B19).","es":""}},{"id":"D","text":{"fr":"","en":"Sorvane's minority shareholders, who still hold shares","es":""},"correct":false,"feedback":{"fr":"","en":"Minority holders keeping an interest do not take control (IFRS 3, para. 7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000024","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.REVERSE.CONSIDERATION","IFRS3.REVERSE.ACCOUNTING_ACQUIRER"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"REVERSE_CONSIDERATION_CALC","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-reverse"},"references":["IFRS 3 §B20","IFRS 3 §B19"],"exercise":{"prompt":{"fr":"","en":"Vestor SA, a listed company, issues new shares to Pelmar SA's owners, who obtain control. Before the transaction, Pelmar's owners hold 60,000 Pelmar shares; afterwards they hold 80% of the combined entity. Case convention: the number of shares is deduced by proportion and the fair value of a Pelmar share is €40. Calculate the consideration transferred.","es":""},"explanation":{"fr":"","en":"Vestor's owners must hold 20%: 60,000 × 20 / 80 = 15,000 shares. Consideration: 15,000 × 40 = €600,000 (IFRS 3, para. B20).","es":""},"common_error":{"fr":"","en":"Multiplying Pelmar's number of shares by 20% instead of reasoning by proportion.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Pelmar shares held by its owners","es":""},"value":"60000","unit":"UNITS"},{"label":{"fr":"","en":"Pelmar owners' interest after the transaction (in %)","es":""},"value":"80","unit":"PERCENT"},{"label":{"fr":"","en":"Fair value of a Pelmar share","es":""},"value":"40","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Shares Pelmar would have had to issue","es":""},"answer":15000,"tolerance":0,"unit":"UNITS"},{"id":"b","label":{"fr":"","en":"Consideration transferred","es":""},"answer":600000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Consideration transferred","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Shares Pelmar would have had to issue","es":""},"value":15000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of a Pelmar share","es":""},"value":40,"unit":"EUR"}],"result":600000,"unit":"EUR"}],"rationale":{"fr":"","en":"Consideration: 15,000 × 40 = €600,000 (IFRS 3, para. B20).","es":""},"references":["REF.IFRS3.B20"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000025","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.REVERSE.ACCOUNTING_ACQUIRER","IFRS3.ACQUIRER.INDICATORS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"REVERSE_NOT_A_BUSINESS","difficulty":"EXPERT","estimated_time_s":60,"lesson_id":"LS.IFRS3.000003","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"judgment"},"references":["IFRS 3 §B19","IFRS 3 §B15"],"exercise":{"prompt":{"fr":"","en":"A listed shell issues shares to an unlisted company whose owners take control of the whole. The accounting acquiree (the listed company) is not a business. Which reading is best supported?","es":""},"explanation":{"fr":"","en":"Rule to remember: IFRS 3 applies to a reverse acquisition only if the accounting acquiree is a business; otherwise, application by analogy (IFRS 3, para. B19).","es":""},"common_error":{"fr":"","en":"Recognising goodwill on a shell company.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 3 applies in full and goodwill is recognised on the listed company, to lighten the presentation","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 3 applies only if the accounting acquiree is a business (IFRS 3, para. B19).","es":""}},{"id":"B","text":{"fr":"","en":"The transaction is excluded from any analysis, for lack of an acquisition within IFRS 3","es":""},"correct":false,"feedback":{"fr":"","en":"The transaction still has to be accounted for; a 2013 Committee decision guides the reading by analogy (IFRS 3, para. B19).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 3 does not apply; a 2013 Committee decision uses application by analogy","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The listed company is the accounting acquirer, because its share is listed","es":""},"correct":false,"feedback":{"fr":"","en":"Listing does not designate the acquirer; the owners who take control do (IFRS 3, para. B19).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000026","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"RECOGNISED_SEPARATELY","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000004","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §10","IFRS 3 §11"],"exercise":{"prompt":{"fr":"","en":"On the acquisition of a store chain, which of these items is recognised separately from goodwill, if it meets the conditions of the standard?","es":""},"explanation":{"fr":"","en":"Rule to remember: identifiable assets, liabilities assumed and non-controlling interest are recognised separately from goodwill (IFRS 3, para. 10).","es":""},"common_error":{"fr":"","en":"Confusing goodwill, which is the balance, with an identifiable item.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A liability assumed, such as the chain's bank loan","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The difference between the price paid and the fair value of the items identified","es":""},"correct":false,"feedback":{"fr":"","en":"That difference is goodwill itself, calculated after the items are recognised (IFRS 3, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"The share of the price paid that corresponds to the overall good reputation of the brand name","es":""},"correct":false,"feedback":{"fr":"","en":"A global reputation that is not identifiable stays in goodwill (IFRS 3, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"A store opening project the acquirer is considering with no commitment","es":""},"correct":false,"feedback":{"fr":"","en":"An acquirer project is neither an asset nor a liability of the acquiree (IFRS 3, para. 11).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000027","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"MEDIA","tested_point":"NOT_ON_ACQUIREE_BALANCE_SHEET","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000004","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"understand"},"references":["IFRS 3 §10","IFRS 3 §11"],"exercise":{"prompt":{"fr":"","en":"An identifiable asset of the acquiree can be recognised by the acquirer even if the acquiree had not recorded it in its own balance sheet.","es":""},"explanation":{"fr":"","en":"What matters is that the item meets the conditions at the acquisition date, not that it already appears in the acquiree's accounts (IFRS 3, paras. 10 and 11).","es":""},"common_error":{"fr":"","en":"Limiting the allocation to the items on the acquiree's balance sheet.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000028","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.PRINCIPLE","IFRS3.RECOGNITION.INTANGIBLES"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"TEXTILE","tested_point":"RECOGNITION_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000004","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §10","IFRS 3 §11"],"exercise":{"prompt":{"fr":"","en":"For each item of the target Mérelle, indicate whether it is recognised separately from goodwill or stays in goodwill.","es":""},"explanation":{"fr":"","en":"Rule to remember: items that are identifiable, meet the definitions at the acquisition date and are part of the exchange are recognised separately (IFRS 3, paras. 10 and 11 for the items covered and the definitions; IFRS 3 for the exchange condition).","es":""},"common_error":{"fr":"","en":"Provisioning an acquirer's plan or isolating non-separable customer relationships.","es":""},"format":"CLASSIFICATION","categories":[{"id":"sep","text":{"fr":"","en":"Recognised separately","es":""}},{"id":"gw","text":{"fr":"","en":"Stays in goodwill or outside the combination","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Dyeing patent registered in the industrial property register, not on Mérelle's balance sheet","es":""},"category":"sep"},{"id":"i2","text":{"fr":"","en":"Multi-year supply contracts signed with three major retailers","es":""},"category":"sep"},{"id":"i3","text":{"fr":"","en":"Warranty liability on sales already made at the acquisition date","es":""},"category":"sep"},{"id":"i4","text":{"fr":"","en":"Plan to close a site that the acquirer decides to launch after the transaction","es":""},"category":"gw"},{"id":"i5","text":{"fr":"","en":"Relationships with occasional customers, with no contract and not separable","es":""},"category":"gw"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000029","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"THREE_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS3.000004","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §10","IFRS 3 §11"],"exercise":{"prompt":{"fr":"","en":"Which conditions must an item meet to be recognised in a business combination? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: two conditions add to the items covered: the definitions at the acquisition date and being part of the exchange (IFRS 3, para. 11 for the definitions; IFRS 3 for the exchange).","es":""},"common_error":{"fr":"","en":"Adding conditions the standard does not set, such as prior recording or a threshold.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Meet the definition of an asset or a liability at the acquisition date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Be part of what was exchanged in the combination, and not of a separate transaction","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Already appear on the acquiree's balance sheet before the transaction","es":""},"correct":false,"feedback":{"fr":"","en":"This is not a condition: items not recorded may be recognised (IFRS 3, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"Have a value above a materiality threshold defined by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The course applies no amount threshold for recognition (pedagogical assumption, not attributed to IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000030","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.CLASSIFICATION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"CLASSIFICATION_AT_DATE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000004","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-classification"},"references":["IFRS 3 §15"],"exercise":{"prompt":{"fr":"","en":"Kestrel SA acquires a company holding a bond portfolio that it kept to maturity. At the acquisition date, Kestrel's business model for these securities is to sell them regularly to manage liquidity. How does Kestrel classify the bonds?","es":""},"explanation":{"fr":"","en":"Rule to remember: classification of items acquired follows the acquirer's facts and policies at the acquisition date (IFRS 3, para. 15).","es":""},"common_error":{"fr":"","en":"Inheriting the acquiree's classification.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As the acquiree classified them, so as not to distort the comparison between years, as some groups do","es":""},"correct":false,"feedback":{"fr":"","en":"Comparability does not justify carrying over the classification; the standard uses the acquisition date (IFRS 3, para. 15).","es":""}},{"id":"B","text":{"fr":"","en":"At Kestrel's choice at the next year-end, once the cash flows are observed","es":""},"correct":false,"feedback":{"fr":"","en":"Classification is assessed at the acquisition date, not postponed (IFRS 3, para. 15).","es":""}},{"id":"C","text":{"fr":"","en":"Within goodwill, the value of the securities being included in the overall price","es":""},"correct":false,"feedback":{"fr":"","en":"The securities are identifiable assets recognised separately from goodwill (IFRS 3, para. 10).","es":""}},{"id":"D","text":{"fr":"","en":"According to its own business model and the conditions at the acquisition date, applying IFRS 9","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000031","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.INTANGIBLES"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"SOFTWARE","tested_point":"INTANGIBLE_CRITERIA","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000004","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-intangibles"},"references":["IFRS 3","IFRS 3 §B32","IFRS 3 §B33"],"exercise":{"prompt":{"fr":"","en":"Analyse the intangibles of the publisher Loméa.","es":""},"explanation":{"fr":"","en":"Rule to remember: an intangible is identifiable through a contractual or legal right, or through its separability (IFRS 3).","es":""},"common_error":{"fr":"","en":"Confusing intention to keep with identifiability.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Dorlane SA acquires Loméa, a software publisher. Loméa holds (a) multi-year licence contracts with 40 corporate customers, (b) software whose code is protected by copyright, (c) a prospect database made up of contacts with no commitment or contract, never exchanged or rented on the market, and for which no transaction in similar databases is known. Dorlane intends to keep all of these items.","es":""},"parts":[{"prompt":{"fr":"","en":"Which criterion makes the licence contracts (a) identifiable?","es":""},"explanation":{"fr":"","en":"Rule to remember: a contractual or legal right makes the intangible identifiable (IFRS 3).","es":""},"common_error":{"fr":"","en":"Looking for separability when a contract is enough.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separability, because the contracts could be sold to a third party","es":""},"correct":false,"feedback":{"fr":"","en":"The contractual-legal criterion is enough, whether or not they are transferable or separable (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"The contractual-legal criterion: they arise from contractual rights","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Dorlane's intention to keep them, which proves their value","es":""},"correct":false,"feedback":{"fr":"","en":"The acquirer's intentions play no part in identification (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"Their prior recording on Loméa's balance sheet, which makes them recognisable","es":""},"correct":false,"feedback":{"fr":"","en":"Prior recording is not an identification criterion (IFRS 3).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"How should the prospect database (c) be treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: without a contractual or legal right, an intangible must be separable to be recognised separately (IFRS 3).","es":""},"common_error":{"fr":"","en":"Concluding on the acquirer's intention.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Leave it in goodwill: no contractual right or established separability","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Recognise it separately, because Dorlane intends to keep it","es":""},"correct":false,"feedback":{"fr":"","en":"The acquirer's intentions do not make an asset identifiable (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"Expense it, as an acquisition-related cost","es":""},"correct":false,"feedback":{"fr":"","en":"An asset acquired is not an acquisition cost; it is in goodwill or identified (IFRS 3, para. 53).","es":""}},{"id":"D","text":{"fr":"","en":"Recognise it separately because the 40 customers are also prospects","es":""},"correct":false,"feedback":{"fr":"","en":"The link with the contracts does not give a right to the prospect database itself (IFRS 3).","es":""}}],"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The existence, on the market, of exchange transactions in similar prospect databases, even rare ones, would be evidence in favour of separability.","es":""},"explanation":{"fr":"","en":"Exchange transactions in this type of asset or a similar one, even infrequent, are evidence of it (IFRS 3).","es":""},"common_error":{"fr":"","en":"Requiring an active market or frequent transactions.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000032","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.INTANGIBLES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"INTANGIBLE_EFFECT_ON_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000004","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-intangibles"},"references":["IFRS 3","IFRS 3 §B32","IFRS 3 §B33"],"exercise":{"prompt":{"fr":"","en":"Elvira SA acquires Pavane SA for €1,200,000 (100% of Pavane, with no other item). Identifiable net assets before intangibles are €800,000; the fair value of a multi-year publishing contract (identifiable, not recorded at Pavane) is €150,000. Case convention: deferred tax is ignored. Calculate goodwill before and after taking the contract into account.","es":""},"explanation":{"fr":"","en":"Without the contract: 1,200,000 - 800,000 = €400,000. With the contract: 1,200,000 - (800,000 + 150,000) = €250,000. Goodwill falls by the amount of the intangible identified (IFRS 3, para. 10).","es":""},"common_error":{"fr":"","en":"Adding the contract to goodwill instead of deducting it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price paid for 100%","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Identifiable net assets before the contract","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the publishing contract","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Goodwill without the contract","es":""},"answer":400000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Goodwill with the contract","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Goodwill without the contract","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price paid for 100%","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Identifiable net assets before the contract","es":""},"value":800000,"unit":"EUR"}],"result":400000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Goodwill with the contract","es":""},"expression":"a - (b + c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price paid for 100%","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Identifiable net assets before the contract","es":""},"value":800000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Fair value of the publishing contract","es":""},"value":150000,"unit":"EUR"}],"result":250000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill falls by the amount of the intangible identified (IFRS 3, para. 10).","es":""},"references":["REF.IFRS3.A.IDENTIFIABLE","REF.IFRS3.B32","REF.IFRS3.B33"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000033","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IAS38"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"LUXURY","tested_point":"INTERNAL_BRAND_ACQUIRED","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000004","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-ias38"},"references":["IFRS 3 §B32","IFRS 3 §B33"],"exercise":{"prompt":{"fr":"","en":"A luxury house created its brand internally and never recorded it on its balance sheet. Garnel SA acquires it along with the house. The brand is protected by legal registration. How does Garnel treat the brand in the combination?","es":""},"explanation":{"fr":"","en":"Rule to remember: an identifiable acquired intangible is recognised separately from goodwill, even if it was internally generated at the target (IFRS 3).","es":""},"common_error":{"fr":"","en":"Applying to the acquirer IAS 38's prohibition on internally generated brands.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It leaves it in goodwill, because IAS 38 prohibits internally generated brands, which would avoid a second calculation","es":""},"correct":false,"feedback":{"fr":"","en":"In a combination, the brand is acquired, not generated by the acquirer; if identifiable, it is recognised (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"It expenses it, the brand not having been recorded at the target","es":""},"correct":false,"feedback":{"fr":"","en":"Not being recorded at the target does not prevent recognition at the acquirer (IFRS 3, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"It recognises it separately from goodwill, because the brand is identifiable through its legal registration","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It ignores it, because its fair value cannot be measured","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value measurement falls under IFRS 13; it does not justify ignoring the intangible (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000034","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT.FAIR_VALUE_PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"FAIR_VALUE_NOT_CARRYING","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000005","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-fv"},"references":["IFRS 3 §18"],"exercise":{"prompt":{"fr":"","en":"To calculate goodwill, the acquirer starts from the carrying amount of assets and liabilities as shown in the acquiree's accounts.","es":""},"explanation":{"fr":"","en":"The acquirer starts from fair value at the acquisition date, not from the acquiree's carrying amount (IFRS 3).","es":""},"common_error":{"fr":"","en":"Calculating goodwill on the target's book net assets.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000035","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT.FAIR_VALUE_PRINCIPLE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"AGRICULTURE","tested_point":"MEASUREMENT_DATE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000005","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-fv"},"references":["IFRS 3 §18"],"exercise":{"prompt":{"fr":"","en":"The contract for the purchase of Terrane SA is signed in March, control passes to the acquirer on 1 June and the acquirer's accounting year-end is 31 December. At what date are the identifiable assets measured at fair value?","es":""},"explanation":{"fr":"","en":"Rule to remember: items are measured at fair value at the acquisition date (IFRS 3).","es":""},"common_error":{"fr":"","en":"Measuring at the signing date or the annual year-end.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In March, at the signing of the contract, which sets the terms of the transaction","es":""},"correct":false,"feedback":{"fr":"","en":"Signing is not the date control passes (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"On 31 December, to align the measurement with the annual year-end","es":""},"correct":false,"feedback":{"fr":"","en":"The annual year-end is not the measurement date of the combination (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"On the date of the last invoice between the parties","es":""},"correct":false,"feedback":{"fr":"","en":"No invoice fixes the measurement date (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"On 1 June, the acquisition date","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000036","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT.FAIR_VALUE_PRINCIPLE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"NET_IDENTIFIABLE_ASSETS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000005","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"numeric-nia"},"references":["IFRS 3 §18"],"exercise":{"prompt":{"fr":"","en":"Orlane SA acquires Vestel SA. At the acquisition date, the fair values (case data) are: building €1,350,000, inventories €310,000, receivables €275,000, patent €205,000 (not recorded at Vestel), loan €640,000, trade payables €185,000. Case convention: deferred tax is ignored. Calculate identifiable net assets.","es":""},"explanation":{"fr":"","en":"Assets: 1,350,000 + 310,000 + 275,000 + 205,000 = €2,140,000. Liabilities: 640,000 + 185,000 = €825,000. Identifiable net assets: 2,140,000 - 825,000 = €1,315,000 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Forgetting the patent because it is not recorded at the target.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Building","es":""},"value":"1350000","unit":"EUR"},{"label":{"fr":"","en":"Inventories","es":""},"value":"310000","unit":"EUR"},{"label":{"fr":"","en":"Receivables","es":""},"value":"275000","unit":"EUR"},{"label":{"fr":"","en":"Patent","es":""},"value":"205000","unit":"EUR"},{"label":{"fr":"","en":"Loan","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Trade payables","es":""},"value":"185000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Total identifiable assets","es":""},"answer":2140000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Total liabilities assumed","es":""},"answer":825000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Identifiable net assets","es":""},"answer":1315000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Total identifiable assets","es":""},"expression":"a + b + c + d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Building","es":""},"value":1350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Inventories","es":""},"value":310000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Receivables","es":""},"value":275000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Patent","es":""},"value":205000,"unit":"EUR"}],"result":2140000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Total liabilities assumed","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Loan","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Trade payables","es":""},"value":185000,"unit":"EUR"}],"result":825000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Identifiable net assets","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total identifiable assets","es":""},"value":2140000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Total liabilities assumed","es":""},"value":825000,"unit":"EUR"}],"result":1315000,"unit":"EUR"}],"rationale":{"fr":"","en":"Identifiable net assets: 2,140,000 - 825,000 = €1,315,000 (IFRS 3).","es":""},"references":["REF.IFRS3.18"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000037","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT.FAIR_VALUE_PRINCIPLE"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"REALESTATE","tested_point":"UPLIFT_REASON","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000005","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-fv"},"references":["IFRS 3 §18"],"exercise":{"prompt":{"fr":"","en":"In Kelda SA's balance sheet, a plot of land is shown at €700,000. Its fair value at the acquisition date by Fenmor SA is €1,050,000. What is the effect of measuring at fair value on Fenmor's goodwill, all else equal, excluding deferred tax?","es":""},"explanation":{"fr":"","en":"Rule to remember: a fair value above carrying amount increases identifiable net assets and reduces goodwill (IFRS 3).","es":""},"common_error":{"fr":"","en":"Seeing goodwill as an amount that follows unrealised gains.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Goodwill increases by €350,000, because identifiable net assets increase","es":""},"correct":false,"feedback":{"fr":"","en":"A rise in identifiable net assets reduces goodwill, which is a balance (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"Goodwill does not change, the gain being allocated to equity","es":""},"correct":false,"feedback":{"fr":"","en":"The gain is part of the allocation and reduces the goodwill balance (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"Goodwill decreases by €1,050,000, the whole value of the land being deducted, which would limit restatements","es":""},"correct":false,"feedback":{"fr":"","en":"Only the part above the carrying amount already in the balance sheet affects the difference; the land was already counted (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"Goodwill decreases by €350,000, because identifiable net assets increase by that amount","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000038","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT.FAIR_VALUE_PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"FV_BLANKS","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS3.000005","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-fv"},"references":["IFRS 3 §18"],"exercise":{"prompt":{"fr":"","en":"Complete the measurement principle.","es":""},"explanation":{"fr":"","en":"Rule to remember: fair value, at the acquisition date, subject to exceptions (IFRS 3).","es":""},"common_error":{"fr":"","en":"Choosing the carrying amount or the signing date.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Identifiable assets acquired and liabilities assumed are measured at {{base}} at the {{date}}, subject to exceptions.","es":""},"blanks":[{"id":"base","mode":"CHOICE","choices":[{"id":"FV","text":{"fr":"","en":"fair value","es":""}},{"id":"CA","text":{"fr":"","en":"the target's carrying amount","es":""}},{"id":"COST","text":{"fr":"","en":"the acquirer's historical cost","es":""}}],"answer":"FV"},{"id":"date","mode":"CHOICE","choices":[{"id":"SIGN","text":{"fr":"","en":"signing date","es":""}},{"id":"AD","text":{"fr":"","en":"acquisition date","es":""}},{"id":"YE","text":{"fr":"","en":"annual year-end date","es":""}}],"answer":"AD"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000039","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT.FAIR_VALUE_PRINCIPLE"],"dimension":"APPLICATION","format":"ERROR_SPOT","context":"AUTOMOTIVE","tested_point":"ALLOCATION_REVIEW","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000005","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"numeric-nia"},"references":["IFRS 3 §18"],"exercise":{"prompt":{"fr":"","en":"An analyst reviews a price allocation and makes four remarks. Spot the erroneous remark.","es":""},"explanation":{"fr":"","en":"Rule to remember: all items are at fair value at the acquisition date, including inventories (IFRS 3).","es":""},"common_error":{"fr":"","en":"Carrying over carrying amounts for current items.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"A brand developed internally by the target must be considered even though it is not on its balance sheet.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The target's inventories are carried at their carrying amount on the eve of the transaction.","es":""},"erroneous":true,"correction":{"fr":"","en":"Inventories are measured at fair value at the acquisition date, which may differ from the carrying amount (IFRS 3).","es":""}},{"id":"S3","text":{"fr":"","en":"Identifiable net assets are the basis for calculating goodwill.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"Fair values are determined at the acquisition date.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000040","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IFRS13"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"IFRS13_POINTER","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000005","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-ifrs13"},"references":["IFRS 3"],"exercise":{"prompt":{"fr":"","en":"A valuation firm gives Dorlane SA the fair value of an acquired patent portfolio. Which standard determines how this fair value is measured in the acquisition method?","es":""},"explanation":{"fr":"","en":"Rule to remember: fair values in the acquisition method are determined under IFRS 13 (IFRS 13, pointer).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 3 for a detailed valuation technique.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 3 itself, which details the valuation techniques for each category of assets","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 3 asks for fair values but points to IFRS 13 for their determination (IFRS 13, pointer).","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 13, which defines fair value and its determination","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IAS 38, because patents are intangible assets","es":""},"correct":false,"feedback":{"fr":"","en":"IAS 38 deals with the accounting for the intangible, not with measuring its fair value (IFRS 13, pointer).","es":""}},{"id":"D","text":{"fr":"","en":"IAS 36, because recoverable amount applies as the basis of the allocation","es":""},"correct":false,"feedback":{"fr":"","en":"Recoverable amount belongs to the impairment test, not to the allocation (IFRS 13, pointer).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000041","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.SUBSEQUENT.GENERAL"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SUBSEQUENT_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000005","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-subsequent"},"references":["IFRS 3 §54"],"exercise":{"prompt":{"fr":"","en":"For each item, indicate whether measurement after the acquisition date falls under specific IFRS 3 guidance or under the IFRS applicable to the item.","es":""},"explanation":{"fr":"","en":"Rule to remember: IFRS 3 specifies subsequent measurement only for reacquired rights, contingent liabilities, indemnification assets and contingent consideration (IFRS 3).","es":""},"common_error":{"fr":"","en":"Looking in IFRS 3 for the subsequent rule of each item.","es":""},"format":"CLASSIFICATION","categories":[{"id":"spec","text":{"fr":"","en":"Specific IFRS 3 guidance","es":""}},{"id":"gen","text":{"fr":"","en":"The item's own IFRS","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"A reacquired right recognised as an intangible","es":""},"category":"spec"},{"id":"i2","text":{"fr":"","en":"A contingent liability assumed and recognised in the combination","es":""},"category":"spec"},{"id":"i3","text":{"fr":"","en":"A machine acquired with the business","es":""},"category":"gen"},{"id":"i4","text":{"fr":"","en":"A contingent consideration classified as a liability","es":""},"category":"spec"},{"id":"i5","text":{"fr":"","en":"A bank loan assumed","es":""},"category":"gen"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000042","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.CONTINGENT_LIABILITIES"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"CONTINGENT_LIABILITY_RECOGNITION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000006","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-contingent"},"references":["IFRS 3 §23"],"exercise":{"prompt":{"fr":"","en":"Hélios SA is sued by a patient for a side effect of a drug sold before its purchase by Garnel SA. A payment is not probable, but the fair value of the obligation can be reliably measured. How does Garnel treat this lawsuit at the acquisition date?","es":""},"explanation":{"fr":"","en":"Rule to remember: a contingent liability assumed is recognised at fair value if it is a present obligation that can be reliably measured (IFRS 3, para. 23).","es":""},"common_error":{"fr":"","en":"Refusing the liability for lack of a probable outflow.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises it at fair value, because the obligation is present and its fair value is reliable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It does not recognise it, because an outflow of resources is not probable, which would reduce the risk of differences","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 3 does not require a probable outflow for a contingent liability assumed (IFRS 3, para. 23).","es":""}},{"id":"C","text":{"fr":"","en":"It includes it in goodwill without recognising it as a liability","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is recognised separately from goodwill (IFRS 3, para. 23).","es":""}},{"id":"D","text":{"fr":"","en":"It waits for the court's judgment to recognise it in profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"Recognition is at the acquisition date, without waiting for the outcome of the lawsuit (IFRS 3, para. 23).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000043","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.CONTINGENT_LIABILITIES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"NO_PROBABILITY_TEST","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000006","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-contingent"},"references":["IFRS 3 §23"],"exercise":{"prompt":{"fr":"","en":"The difference from IAS 37 is that the uncertainty of a contingent liability assumed is reflected in its fair value instead of being a recognition criterion.","es":""},"explanation":{"fr":"","en":"Probability is not required; the uncertainty is reflected in fair value (IFRS 3, para. 23).","es":""},"common_error":{"fr":"","en":"Importing the probable outflow condition of IAS 37.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000044","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.CONTINGENT_LIABILITIES"],"dimension":"CALCULATION","format":"CALCULATION","context":"LOGISTICS","tested_point":"CONTINGENT_LIABILITY_HIGHER_OF","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000006","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"numeric-contingent"},"references":["IFRS 3 §23"],"exercise":{"prompt":{"fr":"","en":"Kaldier SA assumed a contingent liability initially recognised at €60,000, with no related income under IFRS 15. At the end of year 1, the IAS 37 amount is €35,000; at the end of year 2, it is €78,000 (case data). Calculate the measurement used at each year-end.","es":""},"explanation":{"fr":"","en":"Year 1: higher of 35,000 and 60,000 = €60,000. Year 2: higher of 78,000 and 60,000 = €78,000 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Using the year-end IAS 37 amount without comparing it with the initial amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Initial amount","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"IAS 37 amount, end of year 1","es":""},"value":"35000","unit":"EUR"},{"label":{"fr":"","en":"IAS 37 amount, end of year 2","es":""},"value":"78000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Measurement at the end of year 1","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Measurement at the end of year 2","es":""},"answer":78000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Measurement at the end of year 1","es":""},"expression":"max(a, b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"IAS 37 amount, end of year 1","es":""},"value":35000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Initial amount","es":""},"value":60000,"unit":"EUR"}],"result":60000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Measurement at the end of year 2","es":""},"expression":"max(a, b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"IAS 37 amount, end of year 2","es":""},"value":78000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Initial amount","es":""},"value":60000,"unit":"EUR"}],"result":78000,"unit":"EUR"}],"rationale":{"fr":"","en":"Year 2: higher of 78,000 and 60,000 = €78,000 (IFRS 3).","es":""},"references":["REF.IFRS3.23"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000045","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INCOME_TAXES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"DEFERRED_TAX_AND_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000006","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"numeric-tax"},"references":["IFRS 3 §24","IFRS 3"],"exercise":{"prompt":{"fr":"","en":"Pelmar SA acquires 100% of Tavel SA for €950,000. An identified patent has a fair value of €480,000 and a tax base of €150,000; tax rate 30% (case data). Identifiable net assets before deferred tax are €760,000. Calculate the deferred tax liability, identifiable net assets after deferred tax and goodwill.","es":""},"explanation":{"fr":"","en":"Difference: 480,000 - 150,000 = €330,000; liability: 330,000 x 30% = €99,000. Identifiable net assets: 760,000 - 99,000 = €661,000. Goodwill: 950,000 - 661,000 = €289,000 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Computing tax on the whole fair value instead of the difference from the tax base.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value of the patent","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the patent","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (in %)","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Identifiable net assets before deferred tax","es":""},"value":"760000","unit":"EUR"},{"label":{"fr":"","en":"Price paid for 100%","es":""},"value":"950000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":99000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Identifiable net assets after deferred tax","es":""},"answer":661000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Goodwill","es":""},"answer":289000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the patent","es":""},"value":480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the patent","es":""},"value":150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Tax rate (in %)","es":""},"value":30,"unit":"PERCENT"}],"result":99000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Identifiable net assets after deferred tax","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Identifiable net assets before deferred tax","es":""},"value":760000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Deferred tax liability","es":""},"value":99000,"unit":"EUR"}],"result":661000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price paid for 100%","es":""},"value":950000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Identifiable net assets after deferred tax","es":""},"value":661000,"unit":"EUR"}],"result":289000,"unit":"EUR"}],"references":["REF.IFRS3.24","REF.IFRS3.IAS12.66"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000046","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INCOME_TAXES"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"DEFERRED_TAX_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000006","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"numeric-tax"},"references":["IFRS 3 §24","IFRS 3"],"exercise":{"prompt":{"fr":"","en":"In Vestel SA's combination, a deferred tax liability of €42,000 is calculated on a fair value gain of a workshop. The price, assets and other liabilities are already recorded. Post the additional entry for this deferred tax.","es":""},"explanation":{"fr":"","en":"The deferred tax liability of €42,000 is recognised against goodwill, not profit or loss (IFRS 3).","es":""},"common_error":{"fr":"","en":"Debiting a tax expense in profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"dtl","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"exp","text":{"fr":"","en":"Tax expense (profit or loss)","es":""}},{"id":"eq","text":{"fr":"","en":"Equity","es":""}}],"lines":[{"id":"l1","account":"gw","side":"DEBIT","amount":42000,"given":["account","side"]},{"id":"l2","account":"dtl","side":"CREDIT","amount":42000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000047","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IAS12"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"IAS12_BARGAIN_EFFECT","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000006","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-ias12"},"references":["IFRS 3","IFRS 3 §24"],"exercise":{"prompt":{"fr":"","en":"A combination shows identifiable net assets exceeding the price, before deferred tax. A deferred tax liability is then recognised on a fair value gain. What is the effect of this liability on the excess, with an unchanged price?","es":""},"explanation":{"fr":"","en":"Rule to remember: deferred tax changes goodwill or the bargain purchase gain (IFRS 3).","es":""},"common_error":{"fr":"","en":"Forgetting deferred tax in the calculation of the excess.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The excess increases, because the deferred tax liability adds to identifiable net assets","es":""},"correct":false,"feedback":{"fr":"","en":"A liability reduces identifiable net assets; it therefore reduces the excess (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"The excess decreases, because the deferred tax liability reduces identifiable net assets","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The excess does not change, deferred tax being excluded from the allocation","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax changes goodwill or the bargain purchase gain (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"The excess is turned into goodwill by the effect of the liability","es":""},"correct":false,"feedback":{"fr":"","en":"A liability does not convert an excess into goodwill; it reduces the excess (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000048","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.CONCEPTUAL_FRAMEWORK_LIABILITIES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"LEVY_AT_ACQUISITION","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000006","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-cf"},"references":["IFRS 3 §21A"],"exercise":{"prompt":{"fr":"","en":"An annual levy on retail space is due, under IFRIC 21, on the occurrence of an obligating event on 31 December. Garnel SA acquires a store chain on 1 October. What does Garnel decide about this levy at the acquisition date?","es":""},"explanation":{"fr":"","en":"Rule to remember: for a liability within IFRIC 21, whether an obligation exists at the acquisition date is judged under IFRIC 21 (IFRS 3, para. 21A).","es":""},"common_error":{"fr":"","en":"Accruing pro rata a levy whose obligating event is in the future.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises a liability pro rata temporis, because the Conceptual Framework invites it","es":""},"correct":false,"feedback":{"fr":"","en":"For a liability within IFRIC 21, that text determines the obligation, not the Conceptual Framework (IFRS 3, para. 21A).","es":""}},{"id":"B","text":{"fr":"","en":"It recognises a full liability, because the levy is already foreseeable","es":""},"correct":false,"feedback":{"fr":"","en":"A foreseeable levy is not a present obligation until the obligating event has occurred (IFRS 3, para. 21A).","es":""}},{"id":"C","text":{"fr":"","en":"It recognises a contingent liability measured at the fair value of the annual levy, in line with group policy","es":""},"correct":false,"feedback":{"fr":"","en":"With no obligation at the acquisition date, there is no contingent liability to assume (IFRS 3, para. 21A).","es":""}},{"id":"D","text":{"fr":"","en":"It recognises no liability in the combination, the obligating event being later","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000049","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INDEMNIFICATION_ASSETS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"FOOD","tested_point":"INDEMNIFICATION_RECOGNITION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-indemnification"},"references":["IFRS 3 §27"],"exercise":{"prompt":{"fr":"","en":"The sale contract of Dalmar SA provides that its former owners will reimburse Fenmor SA, the acquirer, for any loss arising from a specific health dispute. Fenmor takes over the corresponding liability. How does it account for the former owners' commitment?","es":""},"explanation":{"fr":"","en":"Rule to remember: the former owners' commitment is an indemnification asset recognised with the item indemnified (IFRS 3, para. 27).","es":""},"common_error":{"fr":"","en":"Offsetting the indemnification against the liability instead of recognising an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises an indemnification asset, measured on the same basis as the liability indemnified","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It ignores it until the dispute is judged, as a matter of prudence","es":""},"correct":false,"feedback":{"fr":"","en":"The indemnification asset is recognised at the acquisition date with the item indemnified (IFRS 3, para. 27).","es":""}},{"id":"C","text":{"fr":"","en":"It recognises it as income for the period, at the acquisition date, up to the amount indemnified","es":""},"correct":false,"feedback":{"fr":"","en":"It is an asset acquired that reduces goodwill, not income (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"It reduces the liability assumed by the amount indemnified, with no separate asset","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for a separate indemnification asset, not an offset against the liability (IFRS 3, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000050","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INDEMNIFICATION_ASSETS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"INDEMNIFICATION_BASIS","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-indemnification"},"references":["IFRS 3 §27"],"exercise":{"prompt":{"fr":"","en":"The indemnification asset is measured on a basis independent of that of the item indemnified, depending on the former owners' creditworthiness.","es":""},"explanation":{"fr":"","en":"It is measured on the same basis as the item indemnified (IFRS 3, para. 27), subject to the contractual cap (IFRS 3).","es":""},"common_error":{"fr":"","en":"Detaching the measurement of the indemnification asset from that of the item indemnified.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000051","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INDEMNIFICATION_ASSETS"],"dimension":"CALCULATION","format":"CALCULATION","context":"HEALTHCARE","tested_point":"INDEMNIFICATION_CAP_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"numeric-indemnification"},"references":["IFRS 3 §27","IFRS 3 §28"],"exercise":{"prompt":{"fr":"","en":"Vestel SA assumes a contingent liability measured at €140,000. The former owners undertake to indemnify it up to €110,000. Case convention: collectability is taken as given. Calculate the indemnification asset and its effect on goodwill, considering the asset on its own (leaving aside the €140,000 liability).","es":""},"explanation":{"fr":"","en":"As the contingent liability falls under an exception, the asset reflects the contractual limit (IFRS 3); the lower of 140,000 and 110,000 gives €110,000. Taken on its own, the asset acquired reduces goodwill by €110,000 (IFRS 3); the net effect with the €140,000 liability would be an increase of €30,000.","es":""},"common_error":{"fr":"","en":"Ignoring the cap and using the whole fair value of the liability.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value of the contingent liability","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Contractual cap","es":""},"value":"110000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Indemnification asset","es":""},"answer":110000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Change in goodwill due to the indemnification asset alone (negative = decrease)","es":""},"answer":-110000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Indemnification asset","es":""},"expression":"min(a, b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the contingent liability","es":""},"value":140000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Contractual cap","es":""},"value":110000,"unit":"EUR"}],"result":110000,"unit":"EUR"}],"references":["REF.IFRS3.27","REF.IFRS3.28"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000052","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INDEMNIFICATION_ASSETS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"HEALTHCARE","tested_point":"INDEMNIFICATION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"numeric-indemnification"},"references":["IFRS 3 §27"],"exercise":{"prompt":{"fr":"","en":"In a combination, an uncertain tax liability of €85,000 is assumed. The former owners indemnify it up to €130,000; the indemnification asset is therefore measured at €85,000. Post the entry for the indemnification asset, which is added to the other combination entries.","es":""},"explanation":{"fr":"","en":"The indemnification asset of €85,000 is debited; the counterpart is goodwill, which decreases by this amount (IFRS 3).","es":""},"common_error":{"fr":"","en":"Crediting income for the period instead of goodwill.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ia","text":{"fr":"","en":"Indemnification asset","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"inc","text":{"fr":"","en":"Income for the period (profit or loss)","es":""}},{"id":"tl","text":{"fr":"","en":"Uncertain tax liability","es":""}}],"lines":[{"id":"l1","account":"ia","side":"DEBIT","amount":85000,"given":["account","side"]},{"id":"l2","account":"gw","side":"CREDIT","amount":85000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000053","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INDEMNIFICATION_ASSETS","IFRS3.EXCEPTIONS.CONTINGENT_LIABILITIES"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"REALESTATE","tested_point":"INDEMNIFICATION_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-indemnification"},"references":["IFRS 3 §27","IFRS 3 §28","IFRS 3 §23"],"exercise":{"prompt":{"fr":"","en":"Analyse the treatment of the environmental dispute taken over by Brevane.","es":""},"explanation":{"fr":"","en":"Rule to remember: the liability assumed and the indemnification asset are recognised separately (IFRS 3, para. 27); the asset reflects the contractual limit on the indemnified amount (IFRS 3).","es":""},"common_error":{"fr":"","en":"Offsetting the liability and the indemnification asset.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Brevane SA acquires Sarel SA, which operates an industrial site. An environmental dispute implicates Sarel for events prior to the acquisition; the fair value of the obligation is reliably measured at €210,000, although a conviction is not probable. The former owners contractually undertake to reimburse Brevane for this dispute, up to €150,000.","es":""},"parts":[{"prompt":{"fr":"","en":"How does Brevane treat the dispute obligation at the acquisition date?","es":""},"explanation":{"fr":"","en":"Rule to remember: a contingent liability assumed is recognised if it is a present obligation reliably measurable (IFRS 3, para. 23).","es":""},"common_error":{"fr":"","en":"Applying the IAS 37 probability condition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises nothing, because a conviction is not probable","es":""},"correct":false,"feedback":{"fr":"","en":"No probability is required for a contingent liability assumed (IFRS 3, para. 23).","es":""}},{"id":"B","text":{"fr":"","en":"It recognises €150,000, net of the former owners' indemnification, presented as a deduction from the liability assumed","es":""},"correct":false,"feedback":{"fr":"","en":"The liability and the indemnification asset are recognised separately, without offset (IFRS 3, para. 27).","es":""}},{"id":"C","text":{"fr":"","en":"It recognises a contingent liability of €210,000, a present obligation reliably measurable","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It provides for the dispute in profit or loss for the year of acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is recognised in the combination, against goodwill (IFRS 3, para. 23).","es":""}}],"id":"p1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What is the amount of the indemnification asset?","es":""},"explanation":{"fr":"","en":"The asset follows the basis of the liability, i.e. €210,000 (IFRS 3, para. 27); with the contractual limit of €150,000 (case data, taken into account under IFRS 3), it is €150,000.","es":""},"common_error":{"fr":"","en":"Using €210,000 without applying the cap.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Contingent liability","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Cap","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Indemnification asset","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"The indemnification asset increases Brevane's goodwill.","es":""},"explanation":{"fr":"","en":"The indemnification asset is an asset acquired: it reduces goodwill (IFRS 3).","es":""},"common_error":{"fr":"","en":"Confusing asset acquired and liability assumed on the effect on goodwill.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000054","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.EMPLOYEE_BENEFITS"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"MANUFACTURING","tested_point":"PENSION_PLAN_STANDARD","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-employee"},"references":["IFRS 3 §26"],"exercise":{"prompt":{"fr":"","en":"Kestrel SA's target runs a defined benefit pension plan in deficit. Which standard determines how the deficit is recognised and measured at the acquisition date?","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquiree's employee benefits follow IAS 19 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Applying IFRS 3's general fair value to a pension plan.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 3 itself, which imposes the market fair value of the deficit","es":""},"correct":false,"feedback":{"fr":"","en":"The exception refers to IAS 19, not to IFRS 3's general fair value (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"IAS 37, because the deficit is an uncertain provision","es":""},"correct":false,"feedback":{"fr":"","en":"Employee benefits fall under IAS 19, not IAS 37 (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"IAS 19, which governs employee benefits","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"IFRS 2, because the plan rewards employees","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 2 deals with share-based payments, not pension plans (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS3.000055","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.LEASES"],"dimension":"CALCULATION","format":"CALCULATION","context":"RETAIL","tested_point":"LEASE_LIABILITY_ROU","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"numeric-leases"},"references":["IFRS 3 §28A","IFRS 3 §28B"],"exercise":{"prompt":{"fr":"","en":"Dorsen SA acquires a retailer that is lessee of a shop. Two payments remain: €23,100 in one year and €25,410 in two years; discount rate 10% (case data). The rent is above the market: the terms are unfavourable by €6,000 (case data). Case convention: amounts rounded to the euro. Calculate the lease liability and the right-of-use asset.","es":""},"explanation":{"fr":"","en":"23,100 / 1.10 = €21,000; 25,410 / 1.21 = €21,000. Liability: 21,000 + 21,000 = €42,000. Unfavourable terms: right-of-use asset = 42,000 - 6,000 = €36,000 (IFRS 3; direction of the adjustment: pedagogical assumption, not attributed to IFRS 3).","es":""},"common_error":{"fr":"","en":"Adding the unfavourable adjustment instead of deducting it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Payment in one year","es":""},"value":"23100","unit":"EUR"},{"label":{"fr":"","en":"Payment in two years","es":""},"value":"25410","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (in %)","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Adjustment for unfavourable terms","es":""},"value":"6000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Present value of payment 1","es":""},"answer":21000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Present value of payment 2","es":""},"answer":21000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Lease liability","es":""},"answer":42000,"tolerance":0,"unit":"EUR"},{"id":"d","label":{"fr":"","en":"Right-of-use asset","es":""},"answer":36000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Present value of payment 1","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Payment in one year","es":""},"value":23100,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (in %)","es":""},"value":10,"unit":"PERCENT"}],"result":21000,"unit":"EUR"},{"step":"d","meaning":{"fr":"","en":"Right-of-use asset","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Lease liability","es":""},"value":42000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Adjustment for unfavourable terms","es":""},"value":6000,"unit":"EUR"}],"result":36000,"unit":"EUR"}],"references":["REF.IFRS3.28A","REF.IFRS3.28B"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000056","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.REACQUIRED_RIGHTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"LUXURY","tested_point":"REACQUIRED_RIGHT_AMORTISATION","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"numeric-reacquired"},"references":["IFRS 3 §29"],"exercise":{"prompt":{"fr":"","en":"Valtor SA had granted Kelda SA a brand licence with 3 years remaining. By acquiring Kelda, it takes back the right, measured at €270,000 over the remaining contractual term (the market would expect a renewal, but it is not part of the measurement). Case convention: straight-line amortisation, rounded to the euro. Calculate amortisation for 4 months.","es":""},"explanation":{"fr":"","en":"270,000 / 3 = €90,000 a year; 90,000 × 4 / 12 = €30,000 (amortisation over the remaining contractual term: IFRS 3).","es":""},"common_error":{"fr":"","en":"Lengthening the term to reflect the expected renewal.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value of the reacquired right","es":""},"value":"270000","unit":"EUR"},{"label":{"fr":"","en":"Remaining contractual term (years)","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Months in the period","es":""},"value":"4","unit":"MONTHS"}],"steps":[{"id":"a","label":{"fr":"","en":"Annual amortisation","es":""},"answer":90000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Amortisation for the period","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Annual amortisation","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the reacquired right","es":""},"value":270000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining contractual term (years)","es":""},"value":3,"unit":"YEARS"}],"result":90000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Amortisation for the period","es":""},"expression":"a * b / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual amortisation","es":""},"value":90000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Months in the period","es":""},"value":4,"unit":"MONTHS"}],"result":30000,"unit":"EUR"}],"references":["REF.IFRS3.29"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000057","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.SHARE_BASED_PAYMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"REPLACEMENT_AWARD_SPLIT","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"numeric-sbp"},"references":["IFRS 3 §30","IFRS 3 §B56"],"exercise":{"prompt":{"fr":"","en":"Istrel SA replaces Kerdan SA options with its own. Market-based measure of the replacement award: €160,000. Share of service rendered before the combination: 35% (case data); remaining vesting period: 4 years. Pedagogical assumption: equity-settled award, straight-line expense. Calculate the part in the consideration transferred and the annual post-combination expense.","es":""},"explanation":{"fr":"","en":"160,000 × 35% = €56,000; 160,000 - 56,000 = €104,000; 104,000 / 4 = €26,000 a year (IFRS 3, para. B56).","es":""},"common_error":{"fr":"","en":"Putting the whole award in the consideration transferred.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Measure of the replacement award","es":""},"value":"160000","unit":"EUR"},{"label":{"fr":"","en":"Share of prior service (in %)","es":""},"value":"35","unit":"PERCENT"},{"label":{"fr":"","en":"Remaining vesting period (years)","es":""},"value":"4","unit":"YEARS"}],"steps":[{"id":"a","label":{"fr":"","en":"Part in the consideration transferred","es":""},"answer":56000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Part as post-combination expense","es":""},"answer":104000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Annual expense","es":""},"answer":26000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Part in the consideration transferred","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Measure of the replacement award","es":""},"value":160000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of prior service (in %)","es":""},"value":35,"unit":"PERCENT"}],"result":56000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Part as post-combination expense","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Measure of the replacement award","es":""},"value":160000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Part in the consideration transferred","es":""},"value":56000,"unit":"EUR"}],"result":104000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Annual expense","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Part as post-combination expense","es":""},"value":104000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Remaining vesting period (years)","es":""},"value":4,"unit":"YEARS"}],"result":26000,"unit":"EUR"}],"references":["REF.IFRS3.B56"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000058","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.HELD_FOR_SALE","IFRS3.EXCEPTIONS.INSURANCE_CONTRACTS","IFRS3.EXCEPTIONS.EMPLOYEE_BENEFITS","IFRS3.EXCEPTIONS.LEASES"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"EXCEPTION_STANDARD_SORTING","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS3.000007","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-hfs-ins"},"references":["IFRS 3"],"exercise":{"prompt":{"fr":"","en":"For each item acquired, indicate the standard or basis governing its measurement at the acquisition date.","es":""},"explanation":{"fr":"","en":"Rule to remember: each exception refers to the item's own standard or to the basis it sets (IFRS 3).","es":""},"common_error":{"fr":"","en":"Measuring these items at pure fair value.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ias19","text":{"fr":"","en":"IAS 19 (employee benefits)","es":""}},{"id":"ifrs16","text":{"fr":"","en":"Lease liability and right-of-use asset (IFRS 16)","es":""}},{"id":"ifrs5","text":{"fr":"","en":"Fair value less costs to sell (IFRS 5)","es":""}},{"id":"ifrs17","text":{"fr":"","en":"IFRS 17 (insurance contracts)","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"The target's defined benefit pension plan","es":""},"category":"ias19"},{"id":"i2","text":{"fr":"","en":"Four-year warehouse lease in which the target is lessee","es":""},"category":"ifrs16"},{"id":"i3","text":{"fr":"","en":"Building the acquirer classifies as held for sale from the acquisition","es":""},"category":"ifrs5"},{"id":"i4","text":{"fr":"","en":"Portfolio of protection contracts issued by the target, which are insurance contracts","es":""},"category":"ifrs17"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000059","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.MEASUREMENT_CHOICE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"TWO_BASES","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000008","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-choice"},"references":["IFRS 3 §19"],"exercise":{"prompt":{"fr":"","en":"What are the two bases for measuring the non-controlling interest at the acquisition date?","es":""},"explanation":{"fr":"","en":"Rule to remember: two bases: fair value or the proportionate share of identifiable net assets (IFRS 3).","es":""},"common_error":{"fr":"","en":"Using the target's carrying amount as the basis.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Historical cost or the market value of the shares at the next year-end","es":""},"correct":false,"feedback":{"fr":"","en":"Neither historical cost nor a later value is a basis in the standard (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"The carrying amount of the shares at the target or the acquirer's price scaled to 100%","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not use these bases (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"The share of the target's book equity, or its market capitalisation","es":""},"correct":false,"feedback":{"fr":"","en":"The basis is identifiable net assets at fair value, not book equity (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"Fair value, or the proportionate share of the acquiree's identifiable net assets","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000060","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.MEASUREMENT_CHOICE"],"dimension":"CALCULATION","format":"CALCULATION","context":"FOOD","tested_point":"NCI_PROPORTIONATE_CALC","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS3.000008","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"numeric-nci"},"references":["IFRS 3 §19"],"exercise":{"prompt":{"fr":"","en":"Garnel SA acquires 70% of a cannery. Identifiable net assets are €1,500,000. The non-controlling interest is measured at the proportionate share. Calculate it.","es":""},"explanation":{"fr":"","en":"The minority holds 30%: 1,500,000 × 30% = €450,000 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Applying the acquirer's percentage instead of the minority's.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Identifiable net assets","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Minority percentage (in %)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Non-controlling interest","es":""},"answer":450000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Non-controlling interest","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Minority percentage (in %)","es":""},"value":30,"unit":"PERCENT"}],"result":450000,"unit":"EUR"}],"rationale":{"fr":"","en":"The minority holds 30%: 1,500,000 × 30% = €450,000 (IFRS 3).","es":""},"references":["REF.IFRS3.19"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS3.000061","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.GOODWILL_EFFECT","IFRS3.NCI.MEASUREMENT_CHOICE"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"GOODWILL_BOTH_METHODS","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000008","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"numeric-nci"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Valtor SA acquires 70% of Orlane SA for €1,260,000. Identifiable net assets are €1,500,000. The minority's 30% interest is worth €540,000 at fair value (case data). Calculate goodwill under each method and the goodwill attributable to the non-controlling interest.","es":""},"explanation":{"fr":"","en":"Proportionate share: 1,500,000 × 30% = 450,000, goodwill 1,260,000 + 450,000 - 1,500,000 = €210,000. Fair value: 1,260,000 + 540,000 - 1,500,000 = €300,000. Gap: 300,000 - 210,000 = €90,000 (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Leaving the non-controlling interest out of the formula.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price paid","es":""},"value":"1260000","unit":"EUR"},{"label":{"fr":"","en":"Identifiable net assets","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the minority shareholding","es":""},"value":"540000","unit":"EUR"},{"label":{"fr":"","en":"Minority percentage (in %)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Partial goodwill (proportionate share)","es":""},"answer":210000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Full goodwill (fair value)","es":""},"answer":300000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Goodwill attributable to the non-controlling interest","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Partial goodwill (proportionate share)","es":""},"expression":"a + (b * c) - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price paid","es":""},"value":1260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":1500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Minority percentage (in %)","es":""},"value":30,"unit":"PERCENT"}],"result":210000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Full goodwill (fair value)","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price paid","es":""},"value":1260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the minority shareholding","es":""},"value":540000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":1500000,"unit":"EUR"}],"result":300000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Goodwill attributable to the non-controlling interest","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Full goodwill (fair value)","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Partial goodwill (proportionate share)","es":""},"value":210000,"unit":"EUR"}],"result":90000,"unit":"EUR"}],"rationale":{"fr":"","en":"Gap: 300,000 - 210,000 = €90,000 (IFRS 3, para. 32).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000062","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.GOODWILL_EFFECT"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"WHICH_METHOD_HIGHER_GW","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000008","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-goodwill-effect"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"For a given combination, the fair value of the non-controlling interest is above its proportionate share of identifiable net assets. What can be said about the two goodwill amounts?","es":""},"explanation":{"fr":"","en":"Rule to remember: full goodwill exceeds partial goodwill by the gap between the interest's fair value and its proportionate share (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Calculating the goodwill gap on the price paid.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Partial goodwill is higher, because the proportionate share is a prudent basis","es":""},"correct":false,"feedback":{"fr":"","en":"The higher interest at fair value gives higher goodwill, not lower (IFRS 3, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"Full goodwill is higher, by the gap between fair value and the proportionate share","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Both goodwill amounts are equal, the method affecting equity alone","es":""},"correct":false,"feedback":{"fr":"","en":"The interest is in the goodwill formula: a different measure changes goodwill (IFRS 3, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"Full goodwill is higher, by the minority percentage applied to the price, following the most common practice in the profession","es":""},"correct":false,"feedback":{"fr":"","en":"The gap is that between fair value and the proportionate share, not a percentage of the price (IFRS 3, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000063","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.GOODWILL_EFFECT","IFRS3.NCI.MEASUREMENT_CHOICE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"COMBINATION_ENTRY_NCI","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000008","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"entry-nci"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Fenmor SA acquires 75% of Dalmar SA for €545,000 in cash. At the acquisition date, identifiable assets are €980,000 and liabilities assumed €330,000. The non-controlling interest is measured at fair value, i.e. €195,000 (case data). Post the combination entry (goodwill is €90,000).","es":""},"explanation":{"fr":"","en":"Debits: 980,000 + 90,000 = 1,070,000. Credits: 330,000 + 545,000 + 195,000 = 1,070,000. The entry balances (IFRS 3, paras. 10 and 32).","es":""},"common_error":{"fr":"","en":"Omitting the non-controlling interest on the credit side.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ia","text":{"fr":"","en":"Identifiable assets acquired","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"lia","text":{"fr":"","en":"Liabilities assumed","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"nci","text":{"fr":"","en":"Non-controlling interest","es":""}},{"id":"inc","text":{"fr":"","en":"Acquisition gain (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"ia","side":"DEBIT","amount":980000,"given":["account","side"]},{"id":"l2","account":"gw","side":"DEBIT","amount":90000,"given":["account","side"]},{"id":"l3","account":"lia","side":"CREDIT","amount":330000,"given":["account","side"]},{"id":"l4","account":"cash","side":"CREDIT","amount":545000,"given":["account","side"]},{"id":"l5","account":"nci","side":"CREDIT","amount":195000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000064","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.MEASUREMENT_CHOICE","IFRS3.NCI.GOODWILL_EFFECT"],"dimension":"APPLICATION","format":"MINI_CASE","context":"LOGISTICS","tested_point":"NCI_METHOD_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000008","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-choice"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Compare the two methods for the acquisition of Sorvane.","es":""},"explanation":{"fr":"","en":"Rule to remember: the choice of method is the acquirer's and changes goodwill by the gap between fair value and the proportionate share (IFRS 3).","es":""},"common_error":{"fr":"","en":"Seeing a single goodwill whatever the choice.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Brevane SA acquires 60% of Sorvane SA, a carrier, for €840,000 in cash. Identifiable net assets are €1,200,000. The minority holds 40%; the fair value of their interest is €500,000 (case data, the minority discount being small). The choice of method is Brevane's own, not imposed by the standard.","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate goodwill using the proportionate share and fair value.","es":""},"explanation":{"fr":"","en":"Proportionate share: 1,200,000 × 40% = 480,000; goodwill 840,000 + 480,000 - 1,200,000 = €120,000. Fair value: 840,000 + 500,000 - 1,200,000 = €140,000 (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Calculating the proportionate share on the price paid.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price paid","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Identifiable net assets","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the minority shareholding","es":""},"value":"500000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Goodwill using the proportionate share","es":""},"answer":120000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Goodwill using fair value","es":""},"answer":140000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Goodwill using fair value","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price paid","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the minority shareholding","es":""},"value":500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":1200000,"unit":"EUR"}],"result":140000,"unit":"EUR"}],"references":["REF.IFRS3.32"]}},{"prompt":{"fr":"","en":"What does the €20,000 gap between the two goodwill amounts represent?","es":""},"explanation":{"fr":"","en":"Rule to remember: the gap between the two goodwill amounts is the goodwill attributable to the non-controlling interest (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Seeing it as a control premium paid.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Goodwill attributable to the non-controlling interest","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A control premium paid by Brevane to the former owners, paid in addition to the main price","es":""},"correct":false,"feedback":{"fr":"","en":"The gap comes from measuring the minority shareholding, not from the price paid (IFRS 3, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"A deferred tax saving on the shareholding","es":""},"correct":false,"feedback":{"fr":"","en":"Deferred tax does not explain the gap between the two methods (IFRS 3, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"A bargain purchase gain","es":""},"correct":false,"feedback":{"fr":"","en":"Both methods give positive goodwill: there is no bargain purchase gain (IFRS 3, para. 34).","es":""}}],"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Brevane is required by the standard to use the fair value method for the minority shareholding.","es":""},"explanation":{"fr":"","en":"The choice is the acquirer's, transaction by transaction; the standard imposes neither method (IFRS 3).","es":""},"common_error":{"fr":"","en":"Presenting the case's method as mandatory.","es":""},"format":"TRUE_FALSE","answer":false,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000065","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.MEASUREMENT_CHOICE","IFRS3.NCI.GOODWILL_EFFECT"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"NCI_METHOD_MATCHING","difficulty":"INTERMEDIATE","estimated_time_s":80,"lesson_id":"LS.IFRS3.000008","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-choice"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Match each goodwill notion with what defines it.","es":""},"explanation":{"fr":"","en":"Rule to remember: fair value: full goodwill; proportionate share: partial goodwill; the difference is the goodwill attributable to the minority (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Linking the proportionate share to full goodwill.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Full goodwill","es":""}},{"id":"L2","text":{"fr":"","en":"Partial goodwill","es":""}},{"id":"L3","text":{"fr":"","en":"Goodwill attributable to the non-controlling interest","es":""}}],"right":[{"id":"R1","text":{"fr":"","en":"Obtained when the interest is measured at fair value","es":""}},{"id":"R2","text":{"fr":"","en":"Obtained when the interest is measured at the proportionate share of identifiable net assets","es":""}},{"id":"R3","text":{"fr":"","en":"Gap between full goodwill and partial goodwill","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000066","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.COMPONENTS"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"NCI_COMPONENTS_GUIDANCE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000008","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-components"},"references":["IFRS 3 §19"],"exercise":{"prompt":{"fr":"","en":"Lormand SA's minority holds ordinary shares, which entitle it to a proportionate share of net assets on liquidation, and share subscription options, which do not. Under IFRS 3, how should each component be measured?","es":""},"explanation":{"fr":"","en":"Rule to remember: the proportionate share covers only present ownership instruments entitling their holders to a proportionate share of net assets on liquidation; the options are at fair value, no other basis being required in this case (IFRS 3, para. 19).","es":""},"common_error":{"fr":"","en":"Applying the proportionate share to a component with no right to net assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Both components at the proportionate share, the method being chosen for the whole interest","es":""},"correct":false,"feedback":{"fr":"","en":"The options carry no right to net assets: they are outside the proportionate share (IFRS 3, para. 19).","es":""}},{"id":"B","text":{"fr":"","en":"The shares at fair value and the options at the proportionate share, the reverse being impossible","es":""},"correct":false,"feedback":{"fr":"","en":"It is the other way round: the proportionate share does not cover options (IFRS 3, para. 19).","es":""}},{"id":"C","text":{"fr":"","en":"The shares at the proportionate share or fair value, at choice; the options at fair value","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Both components at fair value, the proportionate share being reserved for combinations without options","es":""},"correct":false,"feedback":{"fr":"","en":"The ordinary shares can be measured at the proportionate share, at the acquirer's choice (IFRS 3, para. 19).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000067","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"GOODWILL_TERMS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-formula"},"references":["IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Which set of terms makes up the goodwill of a combination with no previously held interest?","es":""},"explanation":{"fr":"","en":"Rule to remember: goodwill = consideration + non-controlling interest (+ previously held interest) − identifiable net assets (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Using the target's book net assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Consideration transferred less the target's book net assets, with no non-controlling interest","es":""},"correct":false,"feedback":{"fr":"","en":"The formula uses identifiable net assets at fair value and the non-controlling interest (IFRS 3, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"Consideration transferred plus acquisition costs less identifiable net assets","es":""},"correct":false,"feedback":{"fr":"","en":"Acquisition costs are expensed and outside the formula (IFRS 3, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"Identifiable net assets less consideration transferred plus non-controlling interest","es":""},"correct":false,"feedback":{"fr":"","en":"The signs are reversed: identifiable net assets are deducted (IFRS 3, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"Consideration transferred plus non-controlling interest less identifiable net assets","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000068","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.MEASUREMENT","IFRS3.NCI.MEASUREMENT_CHOICE"],"dimension":"CALCULATION","format":"CALCULATION","context":"HEALTHCARE","tested_point":"GOODWILL_PROPORTIONATE","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"numeric-gw"},"references":["IFRS 3 §32","IFRS 3 §19"],"exercise":{"prompt":{"fr":"","en":"Valtor SA acquires 75% of a clinic for €2,350,000. Identifiable net assets are €2,600,000. The non-controlling interest (25%) is measured at the proportionate share. Calculate the non-controlling interest and goodwill.","es":""},"explanation":{"fr":"","en":"2,600,000 × 25% = €650,000; goodwill = 2,350,000 + 650,000 - 2,600,000 = €400,000 (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Forgetting to add the non-controlling interest.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price paid","es":""},"value":"2350000","unit":"EUR"},{"label":{"fr":"","en":"Identifiable net assets","es":""},"value":"2600000","unit":"EUR"},{"label":{"fr":"","en":"Minority percentage (in %)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Non-controlling interest","es":""},"answer":650000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Goodwill","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Non-controlling interest","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":2600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Minority percentage (in %)","es":""},"value":25,"unit":"PERCENT"}],"result":650000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price paid","es":""},"value":2350000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-controlling interest","es":""},"value":650000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":2600000,"unit":"EUR"}],"result":400000,"unit":"EUR"}],"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000069","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.PURCHASE_PRICE_ALLOCATION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"GOODWILL_IS_RESIDUAL","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-ppa"},"references":["IFRS 3 §32","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"An acquirer that undervalues an identifiable intangible at the acquisition date obtains higher goodwill, at an unchanged price.","es":""},"explanation":{"fr":"","en":"Goodwill is a balance: undervaluing identifiable net assets inflates it by the same amount (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Seeing goodwill as independent of the measurement of the other lines.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000070","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.PURCHASE_PRICE_ALLOCATION","IFRS3.EXCEPTIONS.INCOME_TAXES"],"dimension":"CALCULATION","format":"CALCULATION","context":"MANUFACTURING","tested_point":"PPA_TABLE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"numeric-ppa"},"references":["IFRS 3 §32","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"Istrel SA acquires 100% of Lumen SA for €880,000 in cash and €420,000 in shares. Fair values (case data): building €1,150,000 (tax base €950,000), patent €390,000 (tax base €390,000), inventories and receivables €270,000, liabilities assumed €640,000. Tax rate 30%. No other temporary difference exists (case data). Calculate the consideration, the deferred tax liability, identifiable net assets and goodwill.","es":""},"explanation":{"fr":"","en":"Consideration: 880,000 + 420,000 = €1,300,000. Deferred tax: (1,150,000 - 950,000) × 30% = €60,000. Identifiable net assets: 1,810,000 - 640,000 - 60,000 = €1,110,000. Goodwill: 1,300,000 - 1,110,000 = €190,000 (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Forgetting the shares issued in the consideration.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cash paid","es":""},"value":"880000","unit":"EUR"},{"label":{"fr":"","en":"Shares issued","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Total identifiable assets at fair value","es":""},"value":"1810000","unit":"EUR"},{"label":{"fr":"","en":"Liabilities assumed","es":""},"value":"640000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Consideration transferred","es":""},"answer":1300000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Identifiable net assets","es":""},"answer":1110000,"tolerance":0,"unit":"EUR"},{"id":"d","label":{"fr":"","en":"Goodwill","es":""},"answer":190000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash paid","es":""},"value":880000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued","es":""},"value":420000,"unit":"EUR"}],"result":1300000,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Identifiable net assets","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total identifiable assets at fair value","es":""},"value":1810000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Liabilities assumed","es":""},"value":640000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Deferred tax liability","es":""},"value":60000,"unit":"EUR"}],"result":1110000,"unit":"EUR"},{"step":"d","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":1300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":1110000,"unit":"EUR"}],"result":190000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill: 1,300,000 - 1,110,000 = €190,000 (IFRS 3, para. 32).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000071","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.PURCHASE_PRICE_ALLOCATION"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"GENERIC","tested_point":"PPA_EFFECT_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-ppa"},"references":["IFRS 3 §32","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"At an unchanged price, indicate the effect of each allocation item on goodwill.","es":""},"explanation":{"fr":"","en":"Rule to remember: whatever increases identifiable net assets reduces goodwill; whatever reduces them increases it (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Linking a liability assumed to a decrease in goodwill.","es":""},"format":"CLASSIFICATION","categories":[{"id":"up","text":{"fr":"","en":"Goodwill increases","es":""}},{"id":"down","text":{"fr":"","en":"Goodwill decreases","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"A contractual intangible not recorded at the target is identified","es":""},"category":"down"},{"id":"i2","text":{"fr":"","en":"A deferred tax liability is recognised on a fair value gain","es":""},"category":"up"},{"id":"i3","text":{"fr":"","en":"A contingent liability is assumed at fair value","es":""},"category":"up"},{"id":"i4","text":{"fr":"","en":"An indemnification asset is recognised","es":""},"category":"down"},{"id":"i5","text":{"fr":"","en":"The fair value of a plot of land is raised at the acquisition date","es":""},"category":"down"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000072","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.PURCHASE_PRICE_ALLOCATION"],"dimension":"RULE_KNOWLEDGE","format":"ORDERING","context":"GENERIC","tested_point":"PPA_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-ppa"},"references":["IFRS 3 §32","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"Put the steps of the purchase price allocation in order.","es":""},"explanation":{"fr":"","en":"Rule to remember: consideration and interest come before the measurement of the items; goodwill, the balance, comes last (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Calculating goodwill before applying the exceptions.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Determine the consideration transferred at the acquisition date","es":""}},{"id":"S2","text":{"fr":"","en":"Choose the method of measuring the non-controlling interest","es":""}},{"id":"S3","text":{"fr":"","en":"Measure the identifiable assets and liabilities assumed at fair value","es":""}},{"id":"S4","text":{"fr":"","en":"Apply the exceptions and calculate deferred tax","es":""}},{"id":"S5","text":{"fr":"","en":"Calculate goodwill, the balance of the allocation","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000073","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.MEASUREMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"COMBINATION_ENTRY_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"numeric-ppa"},"references":["IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Orlane SA acquires 100% of Kestrel SA for €1,330,000 in cash. At the acquisition date, identifiable assets are €1,520,000 and liabilities assumed €570,000. Goodwill is €380,000. Post the combination entry.","es":""},"explanation":{"fr":"","en":"Debits: 1,520,000 + 380,000 = 1,900,000. Credits: 570,000 + 1,330,000 = 1,900,000. Goodwill is the balance: 1,330,000 - (1,520,000 - 570,000) = €380,000 (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Posting goodwill on the credit side.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ia","text":{"fr":"","en":"Identifiable assets acquired","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"lia","text":{"fr":"","en":"Liabilities assumed","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"exp","text":{"fr":"","en":"Acquisition expenses (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"ia","side":"DEBIT","amount":1520000,"given":["account","side"]},{"id":"l2","account":"gw","side":"DEBIT","amount":380000,"given":["account","side"]},{"id":"l3","account":"lia","side":"CREDIT","amount":570000,"given":["account","side"]},{"id":"l4","account":"cash","side":"CREDIT","amount":1330000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000074","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IAS36","IFRS3.NCI.MEASUREMENT_CHOICE"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"GOODWILL_GROSS_UP","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"numeric-grossup"},"references":["IFRS 3","IFRS 3 §19"],"exercise":{"prompt":{"fr":"","en":"Fenmor SA holds 60% of Dorlane SA and measured the non-controlling interest at the proportionate share; the goodwill recognised is €156,000. Case convention: the gross-up is calculated by dividing partial goodwill by the percentage held. Calculate notional goodwill at 100% and the gross-up.","es":""},"explanation":{"fr":"","en":"156,000 / 60% = €260,000; gross-up: 260,000 - 156,000 = €104,000 (IAS 36, pointer; calculation under the case convention).","es":""},"common_error":{"fr":"","en":"Applying the minority percentage to partial goodwill.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Goodwill recognised (partial)","es":""},"value":"156000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held by the acquirer (in %)","es":""},"value":"60","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Notional goodwill at 100%","es":""},"answer":260000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Gross-up","es":""},"answer":104000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Notional goodwill at 100%","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill recognised (partial)","es":""},"value":156000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Percentage held by the acquirer (in %)","es":""},"value":60,"unit":"PERCENT"}],"result":260000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Gross-up","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Notional goodwill at 100%","es":""},"value":260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Goodwill recognised (partial)","es":""},"value":156000,"unit":"EUR"}],"result":104000,"unit":"EUR"}],"references":["REF.IFRS3.IAS36.80","REF.IFRS3.19"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000075","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IAS36"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"RETAIL","tested_point":"GOODWILL_ALLOCATION_CGU","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000009","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-ias36"},"references":["IFRS 3"],"exercise":{"prompt":{"fr":"","en":"Brevane SA acquires Mérel SA. The expected synergies will benefit two of Brevane's cash-generating units, logistics and distribution, and not Mérel alone. To whom does it allocate goodwill?","es":""},"explanation":{"fr":"","en":"Rule to remember: goodwill is allocated to the units that will benefit from synergies, from acquisition (IAS 36, pointer).","es":""},"common_error":{"fr":"","en":"Allocating goodwill to the acquiree by default.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To Mérel alone, because it is the acquiree","es":""},"correct":false,"feedback":{"fr":"","en":"Allocation targets the acquirer's units that will benefit from synergies, not necessarily the acquiree (IAS 36, pointer).","es":""}},{"id":"B","text":{"fr":"","en":"To Brevane's head office, with no allocation, goodwill being an asset of general scope","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is allocated to units or groups of units to be tested (IAS 36, pointer).","es":""}},{"id":"C","text":{"fr":"","en":"To the group's largest unit","es":""},"correct":false,"feedback":{"fr":"","en":"The unit cannot exceed an operating segment and matches the internal monitoring level of goodwill (IAS 36, pointer).","es":""}},{"id":"D","text":{"fr":"","en":"To the two units that will benefit from the synergies, from the acquisition date","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000076","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.BARGAIN_PURCHASE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"TEXTILE","tested_point":"BARGAIN_RECOGNITION","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000010","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-bargain"},"references":["IFRS 3 §34"],"exercise":{"prompt":{"fr":"","en":"After complete checking, a target's identifiable net assets exceed the sum of the price paid and the non-controlling interest. What is the consequence?","es":""},"explanation":{"fr":"","en":"Rule to remember: the excess remaining after reassessment is a gain in profit or loss (IFRS 3, para. 34).","es":""},"common_error":{"fr":"","en":"Creating a negative goodwill as an asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A negative goodwill is recognised as an asset pending its release","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill cannot be negative as an asset: the excess is a gain (IFRS 3, para. 34).","es":""}},{"id":"B","text":{"fr":"","en":"The assets acquired are reduced to eliminate the excess","es":""},"correct":false,"feedback":{"fr":"","en":"The assets stay at fair value; the excess is a gain (IFRS 3, para. 34).","es":""}},{"id":"C","text":{"fr":"","en":"A bargain purchase gain is recognised in profit or loss","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A payable to the former owners is recognised for the excess","es":""},"correct":false,"feedback":{"fr":"","en":"No payable is created by an excess of net assets (IFRS 3, para. 34).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000077","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"REASSESSMENT_FIRST","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000010","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-reassess"},"references":["IFRS 3 §36"],"exercise":{"prompt":{"fr":"","en":"Before recognising a bargain purchase gain, the acquirer checks that it has identified all the assets acquired and liabilities assumed, then reviews the measurements.","es":""},"explanation":{"fr":"","en":"This is the reassessment required before any gain (IFRS 3, para. 36).","es":""},"common_error":{"fr":"","en":"Thinking the reassessment is optional.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS3.000078","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.BARGAIN_PURCHASE","IFRS3.GOODWILL.REASSESSMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"AGRICULTURE","tested_point":"BARGAIN_AFTER_REASSESSMENT","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000010","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"numeric-bargain"},"references":["IFRS 3 §34","IFRS 3 §36"],"exercise":{"prompt":{"fr":"","en":"Valtor SA acquires 75% of a cooperative for €1,150,000. Identifiable net assets are first measured at €1,700,000. The reassessment reveals an overstated asset of €80,000: identifiable net assets become €1,620,000. The non-controlling interest (25%) is measured at the proportionate share. Calculate the excess before and after reassessment.","es":""},"explanation":{"fr":"","en":"Before: 1,700,000 × 25% = 425,000; 1,700,000 - (1,150,000 + 425,000) = €125,000. After: 1,620,000 × 25% = 405,000; 1,620,000 - (1,150,000 + 405,000) = €65,000 (IFRS 3, paras. 34 and 36).","es":""},"common_error":{"fr":"","en":"Not recalculating the non-controlling interest after the correction.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price paid","es":""},"value":"1150000","unit":"EUR"},{"label":{"fr":"","en":"Initial identifiable net assets","es":""},"value":"1700000","unit":"EUR"},{"label":{"fr":"","en":"Overstatement found","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Minority percentage (in %)","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Excess before reassessment","es":""},"answer":125000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Gain after reassessment","es":""},"answer":65000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Excess before reassessment","es":""},"expression":"a - (b + (a * c))","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial identifiable net assets","es":""},"value":1700000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Price paid","es":""},"value":1150000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Minority percentage (in %)","es":""},"value":25,"unit":"PERCENT"}],"result":125000,"unit":"EUR"}],"references":["REF.IFRS3.34","REF.IFRS3.36"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000079","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.BARGAIN_PURCHASE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ENERGY","tested_point":"BARGAIN_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000010","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-bargain"},"references":["IFRS 3 §34"],"exercise":{"prompt":{"fr":"","en":"Dorlane SA acquires Sarel SA after reassessment: identifiable assets €840,000, liabilities assumed €190,000, price paid in cash €450,000, non-controlling interest €130,000. The remaining excess is a gain of €70,000. Post the combination entry.","es":""},"explanation":{"fr":"","en":"Debit 840,000; credits 190,000 + 450,000 + 130,000 + 70,000 = 840,000. The gain is the balance: 650,000 - (450,000 + 130,000) = €70,000 (IFRS 3, para. 34).","es":""},"common_error":{"fr":"","en":"Debiting goodwill instead of crediting a gain.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ia","text":{"fr":"","en":"Identifiable assets acquired","es":""}},{"id":"lia","text":{"fr":"","en":"Liabilities assumed","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"nci","text":{"fr":"","en":"Non-controlling interest","es":""}},{"id":"gain","text":{"fr":"","en":"Bargain purchase gain (profit or loss)","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}}],"lines":[{"id":"l1","account":"ia","side":"DEBIT","amount":840000,"given":["account","side"]},{"id":"l2","account":"lia","side":"CREDIT","amount":190000,"given":["account","side"]},{"id":"l3","account":"cash","side":"CREDIT","amount":450000,"given":["account","side"]},{"id":"l4","account":"nci","side":"CREDIT","amount":130000,"given":["account","side"]},{"id":"l5","account":"gain","side":"CREDIT","amount":70000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000080","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.REASSESSMENT","IFRS3.GOODWILL.BARGAIN_PURCHASE"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"FOOD","tested_point":"REASSESSMENT_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000010","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-reassess"},"references":["IFRS 3 §36","IFRS 3 §34"],"exercise":{"prompt":{"fr":"","en":"Analyse the excess found by Istrel in the purchase of Vorne.","es":""},"explanation":{"fr":"","en":"Rule to remember: after reassessment, the remaining excess is a gain in profit or loss at the acquisition date (IFRS 3, paras. 34 and 36).","es":""},"common_error":{"fr":"","en":"Concluding before reassessing.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Istrel SA acquires 100% of Vorne SA for a price below identifiable net assets: the excess is large. The team notes that (a) the file mentions no search for contractual intangibles, (b) the fair values of inventories come from a model prepared a year before the transaction, (c) Vorne was in voluntary liquidation, which partly explains the price discount.","es":""},"parts":[{"prompt":{"fr":"","en":"What is the first step to take?","es":""},"explanation":{"fr":"","en":"Rule to remember: reassessment comes before any gain (IFRS 3, para. 36).","es":""},"common_error":{"fr":"","en":"Taking the explanation of the discount for a reassessment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Reassess: look for omitted items and update fair values to the acquisition date","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Recognise the gain, because the liquidation explains the discount","es":""},"correct":false,"feedback":{"fr":"","en":"Even when explained, the discount does not remove the need for reassessment (IFRS 3, para. 36).","es":""}},{"id":"C","text":{"fr":"","en":"Arbitrarily reduce the fair values until the excess disappears","es":""},"correct":false,"feedback":{"fr":"","en":"Measurements must reflect the information available, not a desired result (IFRS 3, para. 36).","es":""}},{"id":"D","text":{"fr":"","en":"Postpone the decision to the end of the measurement period","es":""},"correct":false,"feedback":{"fr":"","en":"Reassessment is required before recognising a gain at the acquisition date (IFRS 3, para. 36).","es":""}}],"id":"p1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"A colleague comments on the file. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: completeness and currency of measurements are the control points of reassessment (IFRS 3, para. 36).","es":""},"common_error":{"fr":"","en":"Taking the economic reason for the price as an exemption from reassessment.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Vorne's voluntary liquidation explains the price discount and therefore removes the need for reassessment.","es":""},"erroneous":true,"correction":{"fr":"","en":"The economic reason for the price is recorded, but it does not remove the need for reassessment (IFRS 3, para. 36).","es":""}},{"id":"S2","text":{"fr":"","en":"The absence of a documented search for contractual intangibles is a completeness weakness.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Fair values of inventories prepared a year before the transaction do not reflect the acquisition date.","es":""},"erroneous":false}],"id":"p2","dimension":"RULE_KNOWLEDGE"},{"prompt":{"fr":"","en":"If, after these checks, the excess remains, Istrel recognises it in profit or loss at the acquisition date.","es":""},"explanation":{"fr":"","en":"This is the treatment of the bargain purchase gain (IFRS 3, para. 34).","es":""},"common_error":{"fr":"","en":"Deferring the gain to a later date.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000081","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.REASSESSMENT"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"REASSESSMENT_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":70,"lesson_id":"LS.IFRS3.000010","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-reassess"},"references":["IFRS 3 §36"],"exercise":{"prompt":{"fr":"","en":"Put in order the treatment of a negative result of the goodwill formula.","es":""},"explanation":{"fr":"","en":"Rule to remember: one observes, checks, reviews, recalculates, then recognises the gain (IFRS 3, paras. 34 and 36).","es":""},"common_error":{"fr":"","en":"Recognising the gain before reassessment.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Observe that identifiable net assets exceed the price, the interest and the previously held interest","es":""}},{"id":"S2","text":{"fr":"","en":"Check that all the assets acquired and liabilities assumed have been identified","es":""}},{"id":"S3","text":{"fr":"","en":"Review all measurements at the acquisition date","es":""}},{"id":"S4","text":{"fr":"","en":"Recalculate the excess after corrections","es":""}},{"id":"S5","text":{"fr":"","en":"Recognise the remaining excess in profit or loss at the acquisition date","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000082","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"CONSIDERATION_COMPONENTS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000011","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"understand"},"references":["IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"Which of these items is part of the consideration transferred for the acquisition of a company?","es":""},"explanation":{"fr":"","en":"Rule to remember: shares issued to the former owners enter the consideration at fair value (IFRS 3, para. 37).","es":""},"common_error":{"fr":"","en":"Including advisory costs in the consideration.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fees paid to the investment bank that advised the acquirer","es":""},"correct":false,"feedback":{"fr":"","en":"These are acquisition-related costs, expensed (IFRS 3, para. 53).","es":""}},{"id":"B","text":{"fr":"","en":"The legal costs of drafting the sale contract","es":""},"correct":false,"feedback":{"fr":"","en":"Legal costs are acquisition costs, expensed (IFRS 3, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"The seller's reimbursement of the acquirer's due diligence audit costs","es":""},"correct":false,"feedback":{"fr":"","en":"It is a separate transaction, in the acquirer's interest (IFRS 3, para. 52).","es":""}},{"id":"D","text":{"fr":"","en":"The new shares delivered to the former owners, at fair value","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000083","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.ACQUISITION_COSTS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"COSTS_EXPENSED","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000011","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"rule-costs"},"references":["IFRS 3 §53"],"exercise":{"prompt":{"fr":"","en":"Acquisition-related costs, such as intermediaries' fees, are expensed and are not part of the consideration transferred.","es":""},"explanation":{"fr":"","en":"This is the treatment of acquisition-related costs (IFRS 3, para. 53).","es":""},"common_error":{"fr":"","en":"Capitalising them in goodwill.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS3.000084","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"LUXURY","tested_point":"CONSIDERATION_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000011","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"numeric-cons"},"references":["IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"Orlane SA acquires Vestel SA. It pays €640,000 in cash, issues 9,000 shares with a fair value of €42 each at the acquisition date and promises €150,000 in two years (discount rate 4%, case data). Case convention: amounts rounded to the euro. Calculate the consideration transferred.","es":""},"explanation":{"fr":"","en":"Shares: 9,000 × 42 = €378,000. Deferred payment: 150,000 / (1 + 4%)² = €138,683. Total: 640,000 + 378,000 + 138,683 = €1,156,683 (IFRS 3, para. 37).","es":""},"common_error":{"fr":"","en":"Taking the deferred payment at its nominal amount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cash","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Number of shares issued","es":""},"value":"9000","unit":"UNITS"},{"label":{"fr":"","en":"Fair value of a share","es":""},"value":"42","unit":"EUR"},{"label":{"fr":"","en":"Nominal deferred payment","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (in %)","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Shares issued","es":""},"answer":378000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Fair value of the deferred payment","es":""},"answer":138683,"tolerance":0,"unit":"EUR"},{"id":"c","label":{"fr":"","en":"Consideration transferred","es":""},"answer":1156683,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Shares issued","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Number of shares issued","es":""},"value":9000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of a share","es":""},"value":42,"unit":"EUR"}],"result":378000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Fair value of the deferred payment","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Nominal deferred payment","es":""},"value":150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (in %)","es":""},"value":4,"unit":"PERCENT"}],"result":138683,"unit":"EUR"},{"step":"c","meaning":{"fr":"","en":"Consideration transferred","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Shares issued","es":""},"value":378000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Fair value of the deferred payment","es":""},"value":138683,"unit":"EUR"}],"result":1156683,"unit":"EUR"}],"rationale":{"fr":"","en":"Total: 640,000 + 378,000 + 138,683 = €1,156,683 (IFRS 3, para. 37).","es":""},"references":["REF.IFRS3.37"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000085","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.MEASUREMENT","IFRS3.CONSIDERATION.ACQUISITION_COSTS"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"CONTRACT_FLOWS_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000011","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"rule-costs"},"references":["IFRS 3 §37","IFRS 3 §53"],"exercise":{"prompt":{"fr":"","en":"Sort each flow of Dalmar SA's sale contract.","es":""},"explanation":{"fr":"","en":"Rule to remember: consideration concerns the former owners; acquisition costs are expensed; transactions in the acquirer's interest are separate (IFRS 3, paras. 37, 52 and 53).","es":""},"common_error":{"fr":"","en":"Pouring all flows into the consideration.","es":""},"format":"CLASSIFICATION","categories":[{"id":"cons","text":{"fr":"","en":"Part of the consideration transferred","es":""}},{"id":"cost","text":{"fr":"","en":"Acquisition cost, expensed","es":""}},{"id":"sep","text":{"fr":"","en":"Separate transaction in the acquirer's interest","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Cash payment to Dalmar's former shareholders","es":""},"category":"cons"},{"id":"i2","text":{"fr":"","en":"Fees of the law firm that negotiated the contract for the acquirer","es":""},"category":"cost"},{"id":"i3","text":{"fr":"","en":"Seller's reimbursement of audit costs incurred by the acquirer","es":""},"category":"sep"},{"id":"i4","text":{"fr":"","en":"Acquirer shares issued to the former shareholders","es":""},"category":"cons"},{"id":"i5","text":{"fr":"","en":"Commission paid to an intermediary who found the target for the acquirer","es":""},"category":"cost"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000086","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.ACQUISITION_COSTS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"TELECOM","tested_point":"ACQUISITION_COSTS_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000011","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"entry-costs"},"references":["IFRS 3 §53"],"exercise":{"prompt":{"fr":"","en":"Fenmor SA pays €36,000 in legal advisory fees for the acquisition of Tavel SA, priced at €880,000. Post the entry for the fees.","es":""},"explanation":{"fr":"","en":"The fees of €36,000 are debited to expenses; they enter neither the price of €880,000 nor goodwill (IFRS 3, para. 53).","es":""},"common_error":{"fr":"","en":"Debiting goodwill or the investment in the subsidiary.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Acquisition expenses (profit or loss)","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"inv","text":{"fr":"","en":"Investment in subsidiary","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":36000,"given":["account","side"]},{"id":"l2","account":"cash","side":"CREDIT","amount":36000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000087","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.ACQUISITION_COSTS","IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"CALCULATION","format":"MINI_CASE","context":"MEDIA","tested_point":"COSTS_NOT_IN_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000011","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"rule-costs"},"references":["IFRS 3 §53","IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"Measure the effect of the costs on the Lumen combination.","es":""},"explanation":{"fr":"","en":"Rule to remember: the consideration does not include the fees, which are expensed (IFRS 3, paras. 37 and 53).","es":""},"common_error":{"fr":"","en":"Mixing the fees with the price.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Brevane SA acquires 100% of Lumen SA by paying €410,000 in cash and issuing shares with a fair value of €265,000 at the acquisition date. It also pays €31,000 in legal and advisory fees. Identifiable net assets are €640,000 (case data, excluding deferred tax).","es":""},"parts":[{"prompt":{"fr":"","en":"Calculate the consideration transferred and goodwill.","es":""},"explanation":{"fr":"","en":"Consideration: 410,000 + 265,000 = €675,000. Goodwill: 675,000 - 640,000 = €35,000. The fees are not included (IFRS 3, paras. 32, 37 and 53).","es":""},"common_error":{"fr":"","en":"Adding the fees to the consideration.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cash","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of shares issued","es":""},"value":"265000","unit":"EUR"},{"label":{"fr":"","en":"Identifiable net assets","es":""},"value":"640000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Consideration transferred","es":""},"answer":675000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Goodwill","es":""},"answer":35000,"tolerance":0,"unit":"EUR"}],"id":"p1","dimension":"CALCULATION","formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of shares issued","es":""},"value":265000,"unit":"EUR"}],"result":675000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":675000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":640000,"unit":"EUR"}],"result":35000,"unit":"EUR"}],"rationale":{"fr":"","en":"The fees are not included (IFRS 3, paras. 32, 37 and 53).","es":""},"references":["REF.IFRS3.53","REF.IFRS3.37"]}},{"prompt":{"fr":"","en":"Where are the fees recognised?","es":""},"explanation":{"fr":"","en":"Rule to remember: acquisition fees are expensed in the period (IFRS 3, para. 53).","es":""},"common_error":{"fr":"","en":"Capitalising the fees.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As expenses of the period, outside the combination","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In goodwill, which increases by the amount of the fees","es":""},"correct":false,"feedback":{"fr":"","en":"Acquisition costs are not capitalised in goodwill (IFRS 3, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"As a deduction from equity, like share issue costs","es":""},"correct":false,"feedback":{"fr":"","en":"These fees pay for acquisition advice; they are expensed (IFRS 3, para. 53).","es":""}},{"id":"D","text":{"fr":"","en":"As intangible assets, like the customer contracts identified","es":""},"correct":false,"feedback":{"fr":"","en":"The fees are not an asset acquired from the entity (IFRS 3, para. 53).","es":""}}],"id":"p2","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"If the fees had been included in the consideration, goodwill would have been overstated by the amount of the fees.","es":""},"explanation":{"fr":"","en":"Goodwill is a balance: a wrongly increased consideration increases it by the same amount (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Thinking the error has no effect on goodwill.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000088","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.ACQUISITION_COSTS","IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"CONSIDERATION_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000011","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"rule-costs"},"references":["IFRS 3 §53","IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"A manager summarises the treatment of the consideration. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: shares issued are measured at fair value at the acquisition date (IFRS 3, para. 37).","es":""},"common_error":{"fr":"","en":"Fixing the consideration at the announcement date.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The shares issued are measured at their price on the announcement date, which fixes the consideration.","es":""},"erroneous":true,"correction":{"fr":"","en":"The shares are measured at fair value at the acquisition date (IFRS 3, para. 37).","es":""}},{"id":"S2","text":{"fr":"","en":"A deferred payment enters the consideration at its fair value.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The acquirer's legal fees are expensed.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"Goodwill is calculated after fixing the consideration and the identifiable items.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000089","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_INITIAL"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"EARN_OUT_INCLUDED","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000012","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"understand"},"references":["IFRS 3 §39"],"exercise":{"prompt":{"fr":"","en":"In a purchase contract, Garnel SA promises an extra price of €80,000 if the target exceeds a revenue target in three years. At the acquisition date, which treatment is correct?","es":""},"explanation":{"fr":"","en":"Rule to remember: contingent consideration is in the consideration transferred at the acquisition date, at fair value (IFRS 3).","es":""},"common_error":{"fr":"","en":"Waiting for the condition to be met before recognising the extra payment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Include the fair value of the extra payment in the consideration transferred","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No entry until payment falls due, i.e. before the target is met","es":""},"correct":false,"feedback":{"fr":"","en":"The extra payment is already part of the consideration, at fair value (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"Recognise €80,000 as an expense of the year of acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"The extra payment is an element of the price, not a fee expense (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"Add €80,000 to goodwill when payment is actually made","es":""},"correct":false,"feedback":{"fr":"","en":"Contingent consideration is measured at the acquisition date, not the payment date (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000090","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"EQUITY_NOT_REMEASURED","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000012","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"rule-subsequent"},"references":["IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"Contingent consideration classified as equity is not remeasured after the acquisition date and its settlement is recognised in equity.","es":""},"explanation":{"fr":"","en":"This is the subsequent measurement of contingent consideration classified as equity (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Remeasuring an equity instrument.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000091","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_INITIAL"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"EARN_OUT_FAIR_VALUE","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000012","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"numeric-initial"},"references":["IFRS 3 §39"],"exercise":{"prompt":{"fr":"","en":"Istrel SA must pay an extra amount in two years under three scenarios (case data): €0 with 25%, €60,000 with 55%, €150,000 with 20%. Discount rate 6%. Case convention: expected value then discounting, rounded to the euro. Calculate the expected value and the fair value of the contingent consideration.","es":""},"explanation":{"fr":"","en":"60,000 × 55% = 33,000; 150,000 × 20% = 30,000; expected value €63,000. Discounting: 63,000 / (1 + 6%)² = €56,070 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Taking the most likely scenario rather than the expectation.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Payment in scenario 2","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Payment in scenario 3","es":""},"value":"150000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate (in %)","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Expected value","es":""},"answer":63000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Fair value at the acquisition date","es":""},"answer":56070,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"b","meaning":{"fr":"","en":"Fair value at the acquisition date","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected value","es":""},"value":63000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate (in %)","es":""},"value":6,"unit":"PERCENT"}],"result":56070,"unit":"EUR"}],"references":["REF.IFRS3.39"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000092","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"PHARMA","tested_point":"EARN_OUT_REMEASUREMENT_GAIN","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000012","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"numeric-subsequent"},"references":["IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"Istrel SA's contingent consideration liability is €56,070 at the acquisition date. At the next year-end, its fair value is €48,000 (case data: the target performed less well than expected). Calculate the change and state its effect in profit or loss.","es":""},"explanation":{"fr":"","en":"The liability falls from 56,070 to 48,000: gain of €8,070 in profit or loss; goodwill does not change (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Reducing goodwill by the amount of the fall.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Fair value at the acquisition date","es":""},"value":"56070","unit":"EUR"},{"label":{"fr":"","en":"Fair value at year-end","es":""},"value":"48000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Fair value gain in profit or loss (positive = gain)","es":""},"answer":8070,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000093","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MEDIA","tested_point":"EARN_OUT_REMEASUREMENT_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000012","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"numeric-subsequent"},"references":["IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"Valtor SA's contingent consideration liability goes from €72,000 to €85,000 at year-end (case data, performance above forecasts). Post the remeasurement entry.","es":""},"explanation":{"fr":"","en":"The increase of 85,000 − 72,000 = €13,000 is a loss in profit or loss; goodwill stays unchanged (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Debiting goodwill with the change.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"loss","text":{"fr":"","en":"Fair value loss on contingent consideration (profit or loss)","es":""}},{"id":"liab","text":{"fr":"","en":"Contingent consideration liability","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"eq","text":{"fr":"","en":"Equity","es":""}}],"lines":[{"id":"l1","account":"loss","side":"DEBIT","amount":13000,"given":["account","side"]},{"id":"l2","account":"liab","side":"CREDIT","amount":13000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000094","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_CLASSIFICATION","IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"CLASSIFICATION_EFFECTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000012","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"rule-classification"},"references":["IFRS 3 §40","IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"For each consequence, indicate which classification of the contingent consideration it corresponds to.","es":""},"explanation":{"fr":"","en":"Rule to remember: a liability is remeasured at fair value through profit or loss; equity is not remeasured (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Swapping the consequences of the two classifications.","es":""},"format":"CLASSIFICATION","categories":[{"id":"liab","text":{"fr":"","en":"Classified as a liability","es":""}},{"id":"eq","text":{"fr":"","en":"Classified as equity","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Measurement at fair value at each reporting date","es":""},"category":"liab"},{"id":"i2","text":{"fr":"","en":"No remeasurement after the acquisition date","es":""},"category":"eq"},{"id":"i3","text":{"fr":"","en":"Fair value changes recognised in profit or loss","es":""},"category":"liab"},{"id":"i4","text":{"fr":"","en":"Settlement recognised in equity","es":""},"category":"eq"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000095","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IFRS9","IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"IFRS9_FVTPL_LINK","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000012","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"rule-ifrs9"},"references":["IFRS 3 §58","IFRS 3 §40"],"exercise":{"prompt":{"fr":"","en":"A contingent consideration classified as a financial liability is measured, after the acquisition date, in a way that sets it apart from IFRS 9 amortised cost. Which way?","es":""},"explanation":{"fr":"","en":"Rule to remember: contingent consideration as a liability is measured at fair value through profit or loss (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Applying IFRS 9 amortised cost to contingent consideration.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At fair value through other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"Changes go through profit or loss, not other comprehensive income (IFRS 3, para. 58).","es":""}},{"id":"B","text":{"fr":"","en":"At the nominal amount of the extra payment, with no discounting effect","es":""},"correct":false,"feedback":{"fr":"","en":"Measurement is at fair value, which reflects time and uncertainty (IFRS 3, para. 58).","es":""}},{"id":"C","text":{"fr":"","en":"At the historical cost of the acquisition date, without remeasurement","es":""},"correct":false,"feedback":{"fr":"","en":"A contingent consideration liability is remeasured at each reporting date (IFRS 3, para. 58).","es":""}},{"id":"D","text":{"fr":"","en":"At fair value, with changes recognised in profit or loss","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000096","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT","IFRS3.CONSIDERATION.CONTINGENT_CLASSIFICATION"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"ENERGY","tested_point":"EQUITY_CLASSIFIED_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000012","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"rule-subsequent"},"references":["IFRS 3 §58","IFRS 3 §40"],"exercise":{"prompt":{"fr":"","en":"Analyse the treatment of Dalmar's contingent consideration.","es":""},"explanation":{"fr":"","en":"Rule to remember: contingent consideration in equity is not remeasured; its settlement goes to equity (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Applying liability treatment to an equity instrument.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Brevane SA acquires Dalmar SA. The contract provides that, if Dalmar reaches a target, Brevane will deliver a fixed number of its own shares to the sellers. Pedagogical assumption: under IAS 32, this obligation is an equity instrument. Its fair value at the acquisition date is €60,000, included in the consideration transferred. At the next year-end, it is estimated at €75,000. A year later, the shares are delivered, for a value of €95,000.","es":""},"parts":[{"prompt":{"fr":"","en":"What entry does Brevane post at the next year-end for the rise from €60,000 to €75,000?","es":""},"explanation":{"fr":"","en":"Rule to remember: contingent consideration in equity is not remeasured (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Remeasuring an equity instrument at year-end.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A loss of €15,000 in profit or loss, against equity","es":""},"correct":false,"feedback":{"fr":"","en":"An equity instrument is not remeasured: no loss is recognised (IFRS 3, para. 58).","es":""}},{"id":"B","text":{"fr":"","en":"No entry: an equity instrument is not remeasured","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A €15,000 increase in goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"The consideration is fixed at the acquisition date; goodwill does not move (IFRS 3, para. 58).","es":""}},{"id":"D","text":{"fr":"","en":"Income of €15,000 in other comprehensive income","es":""},"correct":false,"feedback":{"fr":"","en":"No remeasurement is recognised, in profit or loss or in other comprehensive income (IFRS 3, para. 58).","es":""}}],"id":"p1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"What gain or loss does Brevane recognise in profit or loss on delivery of the shares?","es":""},"explanation":{"fr":"","en":"Settlement is recognised in equity: profit or loss is €0 (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the gap between €60,000 and €95,000.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Initial fair value","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Value of the shares delivered","es":""},"value":"95000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Profit or loss recognised on settlement","es":""},"answer":0,"tolerance":0,"unit":"EUR"}],"id":"p2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Classifying this obligation as equity leads to a different treatment from a cash settlement classified as a liability.","es":""},"explanation":{"fr":"","en":"Classification determines subsequent measurement: remeasurement for the liability, none for equity (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Treating the two classifications alike.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000097","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.REMEASUREMENT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PREVIOUS_INTEREST_FV","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000013","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000013","section_id":"understand"},"references":["IFRS 3 §41"],"exercise":{"prompt":{"fr":"","en":"In a step acquisition, the previously held interest stays recorded at its carrying amount and its fair value does not enter the goodwill calculation.","es":""},"explanation":{"fr":"","en":"It is remeasured at fair value and that fair value enters goodwill (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Forgetting the previously held interest in the goodwill formula.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000098","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.REMEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"REMEASUREMENT_GAIN","difficulty":"BEGINNER","estimated_time_s":120,"lesson_id":"LS.IFRS3.000013","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000013","section_id":"numeric-stages"},"references":["IFRS 3 §41"],"exercise":{"prompt":{"fr":"","en":"Orlane SA held 15% of Vestel SA at €210,000 (an interest whose remeasurement falls in profit or loss, case data). On the date it obtains control, the fair value of that interest is €255,000. Calculate the remeasurement gain.","es":""},"explanation":{"fr":"","en":"255,000 - 210,000 = €45,000, recognised in profit or loss per the case data; depending on the interest, the difference goes to profit or loss or to other comprehensive income (IFRS 3, para. 42).","es":""},"common_error":{"fr":"","en":"Recognising the difference directly in equity.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Carrying amount of the previously held interest","es":""},"value":"210000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the acquisition date","es":""},"value":"255000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Remeasurement gain in profit or loss","es":""},"answer":45000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Remeasurement gain in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the acquisition date","es":""},"value":255000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the previously held interest","es":""},"value":210000,"unit":"EUR"}],"result":45000,"unit":"EUR"}],"references":["REF.IFRS3.41"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000099","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.REMEASUREMENT","IFRS3.NCI.MEASUREMENT_CHOICE"],"dimension":"CALCULATION","format":"CALCULATION","context":"TELECOM","tested_point":"STEP_GOODWILL","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000013","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000013","section_id":"numeric-stages"},"references":["IFRS 3 §19"],"exercise":{"prompt":{"fr":"","en":"Continuing: Orlane acquires 55% of Vestel for €1,045,000 in cash. The non-controlling interest (30%) is measured at fair value, i.e. €480,000. Identifiable net assets are €1,690,000. Calculate goodwill.","es":""},"explanation":{"fr":"","en":"1,045,000 + 480,000 + 255,000 - 1,690,000 = €90,000 (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Using the carrying amount of the previously held interest.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Consideration transferred","es":""},"value":"1045000","unit":"EUR"},{"label":{"fr":"","en":"Non-controlling interest (fair value)","es":""},"value":"480000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the previously held interest","es":""},"value":"255000","unit":"EUR"},{"label":{"fr":"","en":"Identifiable net assets","es":""},"value":"1690000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Goodwill","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a + b + c - d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":1045000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-controlling interest (fair value)","es":""},"value":480000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Fair value of the previously held interest","es":""},"value":255000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Identifiable net assets","es":""},"value":1690000,"unit":"EUR"}],"result":90000,"unit":"EUR"}],"rationale":{"fr":"","en":"1,045,000 + 480,000 + 255,000 - 1,690,000 = €90,000 (IFRS 3, para. 32).","es":""},"references":["REF.IFRS3.19"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS3.000100","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.REMEASUREMENT","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"STEP_ACQUISITION_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000013","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000013","section_id":"numeric-stages"},"references":["IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Valtor SA held 20% of Lorvane SA at €150,000. It acquires 55% for €560,000 in cash and obtains control. At the acquisition date: fair value of the previously held interest €182,000; identifiable assets €1,250,000; liabilities assumed €430,000; non-controlling interest (25%) at fair value €210,000; goodwill €132,000. Post the combination entry.","es":""},"explanation":{"fr":"","en":"Gain: 182,000 - 150,000 = €32,000. Debits 1,382,000; credits 430,000 + 560,000 + 150,000 + 210,000 + 32,000 = 1,382,000 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Taking the previously held interest out at fair value without recognising the gain.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ia","text":{"fr":"","en":"Identifiable assets acquired","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"lia","text":{"fr":"","en":"Liabilities assumed","es":""}},{"id":"cash","text":{"fr":"","en":"Cash","es":""}},{"id":"prev","text":{"fr":"","en":"Previously held interest (carrying amount)","es":""}},{"id":"nci","text":{"fr":"","en":"Non-controlling interest","es":""}},{"id":"gain","text":{"fr":"","en":"Remeasurement gain (profit or loss)","es":""}},{"id":"eq","text":{"fr":"","en":"Equity","es":""}}],"lines":[{"id":"l1","account":"ia","side":"DEBIT","amount":1250000,"given":["account","side"]},{"id":"l2","account":"gw","side":"DEBIT","amount":132000,"given":["account","side"]},{"id":"l3","account":"lia","side":"CREDIT","amount":430000,"given":["account","side"]},{"id":"l4","account":"cash","side":"CREDIT","amount":560000,"given":["account","side"]},{"id":"l5","account":"prev","side":"CREDIT","amount":150000,"given":["account","side"]},{"id":"l6","account":"nci","side":"CREDIT","amount":210000,"given":["account","side"]},{"id":"l7","account":"gain","side":"CREDIT","amount":32000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000101","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.OCI_RECYCLING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"ENERGY","tested_point":"OCI_RECYCLING_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000013","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000013","section_id":"rule-oci"},"references":["IFRS 3 §42"],"exercise":{"prompt":{"fr":"","en":"On obtaining control of Sarel SA, Garnel SA finds that its previously held interest had generated €18,000 of cumulative translation difference (gain) in other comprehensive income. Case data: this amount would be reclassified to profit or loss on a direct disposal. Post the reclassification entry.","es":""},"explanation":{"fr":"","en":"The cumulative gain of €18,000 is debited in other comprehensive income and credited to profit or loss, as on a direct disposal (IFRS 3, para. 42).","es":""},"common_error":{"fr":"","en":"Leaving the amount in reserves.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"cta","text":{"fr":"","en":"Cumulative translation difference (other comprehensive income)","es":""}},{"id":"pl","text":{"fr":"","en":"Reclassification gain (profit or loss)","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"eq","text":{"fr":"","en":"Reserves","es":""}}],"lines":[{"id":"l1","account":"cta","side":"DEBIT","amount":18000,"given":["account","side"]},{"id":"l2","account":"pl","side":"CREDIT","amount":18000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000102","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.OCI_RECYCLING","IFRS3.STAGES.REMEASUREMENT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"BANKING","tested_point":"STEP_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000013","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000013","section_id":"rule-oci"},"references":["IFRS 3 §42","IFRS 3 §41"],"exercise":{"prompt":{"fr":"","en":"An analyst summarises the treatment of a step acquisition (equity-accounted previously held interest, remeasurement in profit or loss and a cumulative translation difference reclassifiable on a direct disposal, case data). Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: other comprehensive income of the previously held interest is treated as on a direct disposal; here it is therefore reclassified to profit or loss (IFRS 3, para. 42).","es":""},"common_error":{"fr":"","en":"Leaving other comprehensive income in reserves.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The previously held interest is remeasured at fair value at the acquisition date.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The remeasurement gain or loss is recognised in profit or loss.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The fair value of the previously held interest is added to the consideration in the goodwill calculation.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"Other comprehensive income of the previously held interest stays in equity after control is obtained.","es":""},"erroneous":true,"correction":{"fr":"","en":"They are treated as on a direct disposal; here, a direct disposal would trigger reclassification to profit or loss (IFRS 3, para. 42).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000103","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.REMEASUREMENT"],"dimension":"CALCULATION","format":"SINGLE_CHOICE","context":"MEDIA","tested_point":"REMEASUREMENT_LOSS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000013","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000013","section_id":"understand"},"references":["IFRS 3 §41"],"exercise":{"prompt":{"fr":"","en":"Dorlane SA held a previously held interest recorded at €420,000. On the date it takes control, its fair value is €392,000. What is the treatment of the difference?","es":""},"explanation":{"fr":"","en":"Rule to remember: the remeasurement difference, gain or loss, goes to profit or loss (IFRS 3).","es":""},"common_error":{"fr":"","en":"Reserving remeasurement for gains only.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No entry, the difference being unrealised and the interest remaining at €420,000","es":""},"correct":false,"feedback":{"fr":"","en":"The interest is remeasured at fair value at the acquisition date, whichever way the difference goes (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"A loss of €28,000 in equity, losses not going through profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"The gain or loss is recognised in profit or loss (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"A loss of €28,000 in profit or loss, the interest being brought down to €392,000","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A loss of €28,000 charged to goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"The remeasurement loss is not charged to goodwill; it is in profit or loss (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000104","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.PERIOD"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"PROVISIONAL_AMOUNTS","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000014","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"understand"},"references":["IFRS 3 §45"],"exercise":{"prompt":{"fr":"","en":"When the initial accounting for a combination is incomplete at the reporting date, the acquirer reports provisional amounts for the incomplete items.","es":""},"explanation":{"fr":"","en":"This is the rule on provisional amounts (IFRS 3).","es":""},"common_error":{"fr":"","en":"Delaying the accounts rather than reporting provisional amounts.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS3.000105","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.PERIOD","IFRS3.MEASUREMENT_PERIOD.ADJUSTMENTS"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"PERIOD_END_DATE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000014","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-adjust"},"references":["IFRS 3 §45","IFRS 3 §46"],"exercise":{"prompt":{"fr":"","en":"Orlane SA obtains control of Kelda SA on 1 July N. On 15 December N, it receives all the appraisals it was waiting for and concludes that its search for information is complete. When does the measurement period end?","es":""},"explanation":{"fr":"","en":"Rule to remember: the measurement period may end as soon as the information sought is obtained (IFRS 3).","es":""},"common_error":{"fr":"","en":"Systematically using the one-year duration.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On 30 June N+1, one year after the acquisition date, a fixed duration","es":""},"correct":false,"feedback":{"fr":"","en":"The period may end earlier as soon as the information sought is obtained (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"On 31 December N, at the annual year-end following the acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"The annual year-end does not set the end of the measurement period (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"On 1 January N+1, the first day of the following year","es":""},"correct":false,"feedback":{"fr":"","en":"The start of a year does not set the end of the period (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"On 15 December N, the date the acquirer concludes it has obtained the information","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000106","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.ADJUSTMENTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"GOODWILL_ADJUSTMENT_CALC","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000014","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"numeric-adjust"},"references":["IFRS 3 §46"],"exercise":{"prompt":{"fr":"","en":"Vestel SA recognised a customer contract at a provisional amount of €180,000, with provisional goodwill of €410,000. During the measurement period, a study shows that the fair value of this contract at the acquisition date was €235,000. Tax rate 30% (case data). Case convention: depreciation of the difference ignored. Calculate the additional deferred tax liability and the adjusted goodwill.","es":""},"explanation":{"fr":"","en":"Increase: 235,000 - 180,000 = €55,000; deferred tax: 55,000 × 30% = €16,500; change in net assets: 55,000 - 16,500 = €38,500; goodwill: 410,000 - 38,500 = €371,500 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Charging the whole increase to goodwill without deferred tax.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Provisional amount of the contract","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the acquisition date","es":""},"value":"235000","unit":"EUR"},{"label":{"fr":"","en":"Provisional goodwill","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Tax rate (in %)","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"a","label":{"fr":"","en":"Additional deferred tax liability","es":""},"answer":16500,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Adjusted goodwill","es":""},"answer":371500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Additional deferred tax liability","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the acquisition date","es":""},"value":235000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Provisional amount of the contract","es":""},"value":180000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Tax rate (in %)","es":""},"value":30,"unit":"PERCENT"}],"result":16500,"unit":"EUR"}],"references":["REF.IFRS3.46"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000107","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.ADJUSTMENTS"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"MANUFACTURING","tested_point":"MEASUREMENT_PERIOD_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000014","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"numeric-adjust"},"references":["IFRS 3 §46"],"exercise":{"prompt":{"fr":"","en":"During the measurement period, the appraisal of a Lormand SA warehouse raises its fair value at the acquisition date by €72,000, with a deferred tax liability of €18,000 (case data). Post the adjustment entry (depreciation ignored).","es":""},"explanation":{"fr":"","en":"Debit 72,000; credits 18,000 + 54,000 = 72,000. Goodwill decreases by 72,000 - 18,000 = €54,000 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Crediting income to profit or loss instead of goodwill.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"ppe","text":{"fr":"","en":"Property, plant and equipment","es":""}},{"id":"dtl","text":{"fr":"","en":"Deferred tax liability","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"pl","text":{"fr":"","en":"Income for the period (profit or loss)","es":""}}],"lines":[{"id":"l1","account":"ppe","side":"DEBIT","amount":72000,"given":["account","side"]},{"id":"l2","account":"dtl","side":"CREDIT","amount":18000,"given":["account","side"]},{"id":"l3","account":"gw","side":"CREDIT","amount":54000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000108","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.ADJUSTMENTS","IFRS3.MEASUREMENT_PERIOD.AFTER_PERIOD"],"dimension":"ANALYSIS","format":"CLASSIFICATION","context":"GENERIC","tested_point":"ADJUSTMENT_OR_NOT_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000014","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-adjust"},"references":["IFRS 3 §50"],"exercise":{"prompt":{"fr":"","en":"For each piece of information obtained, indicate whether it gives rise to a measurement period adjustment or to another treatment.","es":""},"explanation":{"fr":"","en":"Rule to remember: only facts existing at the acquisition date give rise to a goodwill adjustment during the measurement period (IFRS 3).","es":""},"common_error":{"fr":"","en":"Adjusting goodwill for any event occurring in the period.","es":""},"format":"CLASSIFICATION","categories":[{"id":"adj","text":{"fr":"","en":"Goodwill adjustment (measurement period)","es":""}},{"id":"oth","text":{"fr":"","en":"Other treatment, no goodwill adjustment","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Six months after acquisition, an appraisal establishes the value of a plot of land at the acquisition date","es":""},"category":"adj"},{"id":"i2","text":{"fr":"","en":"Five months after acquisition, a fire destroys a warehouse acquired","es":""},"category":"oth"},{"id":"i3","text":{"fr":"","en":"One month after year-end, a dispute that arose before the acquisition date is discovered","es":""},"category":"adj"},{"id":"i4","text":{"fr":"","en":"The fair value of a contingent consideration rises because the target exceeds its targets after the acquisition","es":""},"category":"oth"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000109","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.ADJUSTMENTS","IFRS3.MEASUREMENT_PERIOD.PERIOD","IFRS3.MEASUREMENT_PERIOD.AFTER_PERIOD"],"dimension":"ANALYSIS","format":"MINI_CASE","context":"PHARMA","tested_point":"LATE_APPRAISAL_CASE","difficulty":"INTERMEDIATE","estimated_time_s":180,"lesson_id":"LS.IFRS3.000014","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-adjust"},"references":["IFRS 3 §50"],"exercise":{"prompt":{"fr":"","en":"Qualify the late appraisal received by Dorlane.","es":""},"explanation":{"fr":"","en":"Rule to remember: adjustment within the period, error correction afterwards (IFRS 3).","es":""},"common_error":{"fr":"","en":"Treating all late information alike.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Dorlane SA took control of Zelda SA on 1 March N. The accounts for N included a provisional amount for a patent. An expert delivers a report on 10 October N: the fair value of the patent at the acquisition date is €40,000 above the provisional amount. A second report, delivered on 20 May N+1 (more than twelve months after the acquisition date), reveals that the expert had not taken into account a licence contract already signed at the acquisition date.","es":""},"parts":[{"prompt":{"fr":"","en":"How should the first report, delivered on 10 October N, be treated?","es":""},"explanation":{"fr":"","en":"Rule to remember: information about the acquisition date obtained within the measurement period gives a goodwill adjustment (IFRS 3).","es":""},"common_error":{"fr":"","en":"Taking the information to profit or loss.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As income for year N, because the information arrives after the acquisition","es":""},"correct":false,"feedback":{"fr":"","en":"The fact existed at the acquisition date: it is a goodwill adjustment (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"As a retrospective goodwill adjustment, because it concerns the acquisition date","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"In other comprehensive income, like an asset revaluation","es":""},"correct":false,"feedback":{"fr":"","en":"No revaluation in other comprehensive income is provided for in this case (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"It is not taken into account before the next annual year-end","es":""},"correct":false,"feedback":{"fr":"","en":"The adjustment is made as soon as the information is obtained (IFRS 3).","es":""}}],"id":"p1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"How should the second report, delivered on 20 May N+1, be qualified?","es":""},"explanation":{"fr":"","en":"Rule to remember: after the period, only error correction under IAS 8 changes the accounting (IFRS 3, para. 50).","es":""},"common_error":{"fr":"","en":"Extending the measurement period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a further goodwill adjustment, the measurement period being extended","es":""},"correct":false,"feedback":{"fr":"","en":"The period cannot exceed one year: it is over (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"As a later change to be recognised in profit or loss for N+1","es":""},"correct":false,"feedback":{"fr":"","en":"The contract existed at the acquisition date: it is not a later event (IFRS 3, para. 50).","es":""}},{"id":"C","text":{"fr":"","en":"As a possible error to correct under IAS 8, if reliable information was available","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"As information to ignore, the measurement period being over","es":""},"correct":false,"feedback":{"fr":"","en":"An error is corrected even after the period (IFRS 3, para. 50).","es":""}}],"id":"p2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The measurement period adjustment leads to restating the comparative information for year N.","es":""},"explanation":{"fr":"","en":"Comparative information is restated as if the accounting had been final (IFRS 3).","es":""},"common_error":{"fr":"","en":"Adjusting the current year alone.","es":""},"format":"TRUE_FALSE","answer":true,"id":"p3","dimension":"RULE_KNOWLEDGE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000110","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.AFTER_PERIOD"],"dimension":"RULE_KNOWLEDGE","format":"ERROR_SPOT","context":"GENERIC","tested_point":"AFTER_PERIOD_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000014","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-after"},"references":["IFRS 3 §50"],"exercise":{"prompt":{"fr":"","en":"A colleague summarises the accounting after the measurement period. Spot the erroneous statement.","es":""},"explanation":{"fr":"","en":"Rule to remember: after the measurement period, goodwill is changed only to correct an error under IAS 8 (IFRS 3, para. 50).","es":""},"common_error":{"fr":"","en":"Adjusting goodwill with no time limit.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"A fact existing at the acquisition date, discovered after the period, gives rise to a goodwill adjustment as during the period.","es":""},"erroneous":true,"correction":{"fr":"","en":"After the period, goodwill is no longer adjusted; only an error under IAS 8 justifies a correction (IFRS 3, para. 50).","es":""}},{"id":"S2","text":{"fr":"","en":"The accounting for the combination is changed to correct an error alone.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Later changes in fair value of an item acquired fall under the rules applicable to that item.","es":""},"erroneous":false},{"id":"S4","text":{"fr":"","en":"Correcting an error follows IAS 8.","es":""},"erroneous":false}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000111","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRINCIPLE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"EXCHANGE_FOR_ACQUIREE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"understand"},"references":["IFRS 3 §51","IFRS 3 §52"],"exercise":{"prompt":{"fr":"","en":"In Valtor SA's contract to buy Dorlane SA, which part falls under the acquisition method?","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquisition method applies only to what is exchanged for the acquiree (IFRS 3, para. 51).","es":""},"common_error":{"fr":"","en":"Applying the method to the whole contract.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The whole contract, including the clauses that benefit the acquirer","es":""},"correct":false,"feedback":{"fr":"","en":"Clauses in the acquirer's interest are separate transactions (IFRS 3, para. 51).","es":""}},{"id":"B","text":{"fr":"","en":"The consideration transferred and the assets acquired and liabilities assumed exchanged for Dorlane","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The price paid in cash, excluding shares issued","es":""},"correct":false,"feedback":{"fr":"","en":"Shares issued to the former owners are also part of the consideration (IFRS 3, para. 51).","es":""}},{"id":"D","text":{"fr":"","en":"Tangible assets alone, intangibles falling under another standard","es":""},"correct":false,"feedback":{"fr":"","en":"All identifiable assets exchanged fall under the method, including intangibles (IFRS 3, para. 51).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000112","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"EACH_PAYMENT_IS_CONSIDERATION","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"rule-principle"},"references":["IFRS 3 §51","IFRS 3 §52"],"exercise":{"prompt":{"fr":"","en":"Each payment provided for in the sale contract is part of the consideration transferred.","es":""},"explanation":{"fr":"","en":"Only what is exchanged for the acquiree is part of it; a transaction in the acquirer's interest is separate (IFRS 3, paras. 51 and 52).","es":""},"common_error":{"fr":"","en":"Confusing the total contract amount with the consideration.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000113","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRINCIPLE"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"SEPARATE_TRANSACTION_SORTING","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"rule-principle"},"references":["IFRS 3 §51","IFRS 3 §52"],"exercise":{"prompt":{"fr":"","en":"Sort each item in the contract for the purchase of Mérel: exchange for the acquiree, or separate transaction.","es":""},"explanation":{"fr":"","en":"Rule to remember: what pays for the acquiree is exchanged; what mainly benefits the acquirer is separate (IFRS 3, paras. 51 and 52).","es":""},"common_error":{"fr":"","en":"Placing in the exchange the payments that benefit the acquirer.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ex","text":{"fr":"","en":"Exchange for the acquiree","es":""}},{"id":"sep","text":{"fr":"","en":"Separate transaction","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Payment of the price of the shares to Mérel's former shareholders","es":""},"category":"ex"},{"id":"i2","text":{"fr":"","en":"Reimbursement by the sellers of the acquirer's legal fees","es":""},"category":"sep"},{"id":"i3","text":{"fr":"","en":"Takeover by the acquirer of Mérel's trade payables","es":""},"category":"ex"},{"id":"i4","text":{"fr":"","en":"Bonus promised to an acquirer's executive if the deal succeeds","es":""},"category":"sep"},{"id":"i5","text":{"fr":"","en":"Acquirer shares delivered to the former shareholders in exchange for their shares","es":""},"category":"ex"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000114","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRINCIPLE","IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"CALCULATION","format":"CALCULATION","context":"SOFTWARE","tested_point":"CONSIDERATION_NET_OF_SERVICES","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"numeric-sep"},"references":["IFRS 3 §51","IFRS 3 §52","IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"Istrel SA pays a total of €840,000 to the former owners of Lumen SA. The contract specifies that €36,000 pays for a 3-year consulting contract provided to Istrel after the combination. Case convention: straight-line spreading. Calculate the consideration transferred and the annual expense.","es":""},"explanation":{"fr":"","en":"840,000 - 36,000 = €804,000; 36,000 / 3 = €12,000 a year (IFRS 3, paras. 51 and 52).","es":""},"common_error":{"fr":"","en":"Leaving the remuneration in the consideration.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Total payment","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Part for future services","es":""},"value":"36000","unit":"EUR"},{"label":{"fr":"","en":"Service period (years)","es":""},"value":"3","unit":"YEARS"}],"steps":[{"id":"a","label":{"fr":"","en":"Consideration transferred","es":""},"answer":804000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Annual remuneration expense","es":""},"answer":12000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Total payment","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Part for future services","es":""},"value":36000,"unit":"EUR"}],"result":804000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Annual remuneration expense","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Part for future services","es":""},"value":36000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Service period (years)","es":""},"value":3,"unit":"YEARS"}],"result":12000,"unit":"EUR"}],"references":["REF.IFRS3.51","REF.IFRS3.52"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000115","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRINCIPLE"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"SOFTWARE","tested_point":"REMUNERATION_EXPENSE_ENTRY","difficulty":"INTERMEDIATE","estimated_time_s":120,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"numeric-sep"},"references":["IFRS 3 §51","IFRS 3 §52"],"exercise":{"prompt":{"fr":"","en":"In the contract to buy Tavel SA, Fenmor SA agreed a payment of €30,000 for the first year of a consulting contract provided after the combination by the former manager. Post the entry for the first year's expense (settlement later).","es":""},"explanation":{"fr":"","en":"Remuneration for future services is expensed (€30,000), not included in goodwill (IFRS 3, para. 52).","es":""},"common_error":{"fr":"","en":"Debiting the payment to goodwill.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"exp","text":{"fr":"","en":"Post-combination remuneration expense (profit or loss)","es":""}},{"id":"pay","text":{"fr":"","en":"Payable to the former manager","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"cons","text":{"fr":"","en":"Consideration transferred","es":""}}],"lines":[{"id":"l1","account":"exp","side":"DEBIT","amount":30000,"given":["account","side"]},{"id":"l2","account":"pay","side":"CREDIT","amount":30000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000116","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRE_EXISTING"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"PREEXISTING_SETTLEMENT","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"rule-preexisting"},"references":["IFRS 3 §52"],"exercise":{"prompt":{"fr":"","en":"Brevane SA has supplied parts to Calmora SA for years under a supply contract. By buying Calmora, it ends the contract, which was on market terms except for a clause penalising it. How does it treat the settlement of the contract?","es":""},"explanation":{"fr":"","en":"Rule to remember: the settlement of a pre-existing relationship is a separate transaction with a gain or loss (IFRS 3).","es":""},"common_error":{"fr":"","en":"Building the settlement into the price of the business.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As part of the consideration transferred, which increases goodwill","es":""},"correct":false,"feedback":{"fr":"","en":"The settlement of a pre-existing relationship is a separate transaction, outside the consideration (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"As an identifiable intangible asset acquired, measured at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"A contract between the acquirer and the target is settled by the combination, it is not an asset acquired (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"As an adjustment to equity, with no effect on profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"The separate transaction is accounted for with a gain or loss (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"As a separate transaction, accounted for with a gain or loss","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000117","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRE_EXISTING"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"AUTOMOTIVE","tested_point":"PREEXISTING_ENTRY","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"rule-preexisting"},"references":["IFRS 3 §52"],"exercise":{"prompt":{"fr":"","en":"In the Calmora combination, Brevane SA recognises a settlement gain of €22,000 on the end of a pre-existing supply contract (pedagogical assumption: the gain is case data, its counterpart being an unfavourable supply contract liability). Post the settlement entry.","es":""},"explanation":{"fr":"","en":"The contract liability is cleared (€22,000) against a gain in profit or loss; goodwill and the consideration are not changed (IFRS 3).","es":""},"common_error":{"fr":"","en":"Charging the settlement gain to goodwill.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"liab","text":{"fr":"","en":"Unfavourable supply contract liability","es":""}},{"id":"gain","text":{"fr":"","en":"Settlement gain on a pre-existing relationship (profit or loss)","es":""}},{"id":"gw","text":{"fr":"","en":"Goodwill","es":""}},{"id":"cons","text":{"fr":"","en":"Consideration transferred","es":""}}],"lines":[{"id":"l1","account":"liab","side":"DEBIT","amount":22000,"given":["account","side"]},{"id":"l2","account":"gain","side":"CREDIT","amount":22000,"given":["account","side"]}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000118","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.REMUNERATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"SOFTWARE","tested_point":"EARN_OUT_FORFEITED_ON_EXIT","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"rule-remuneration"},"references":["IFRS 3 §B55"],"exercise":{"prompt":{"fr":"","en":"Garnel SA acquires Pelmar SA. An extra €100,000 is promised to the former owner, who becomes a director. The contract specifies that the extra is forfeited if the owner leaves before the end of the second year, with no non-substantive service condition. How should the extra be qualified?","es":""},"explanation":{"fr":"","en":"Rule to remember: a payment automatically forfeited when employment ends is post-combination remuneration (IFRS 3, para. B55).","es":""},"common_error":{"fr":"","en":"Seeing additional price in any payment promised to a former owner.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As remuneration for post-combination services, expensed","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"As additional price, because it is promised to a former owner","es":""},"correct":false,"feedback":{"fr":"","en":"A payment automatically forfeited when employment ends is remuneration (IFRS 3, para. B55).","es":""}},{"id":"C","text":{"fr":"","en":"As additional price, the two-year duration being enough to establish it","es":""},"correct":false,"feedback":{"fr":"","en":"Duration is a non-conclusive sign on its own; the automatic forfeiture indicator is conclusive (IFRS 3, para. B55).","es":""}},{"id":"D","text":{"fr":"","en":"As a transaction out of scope, with no particular accounting treatment","es":""},"correct":false,"feedback":{"fr":"","en":"It is accounted for separately, as an expense, under the standard on employee benefits (IFRS 3, para. B55).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000119","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRINCIPLE","IFRS3.PART_OF.PRE_EXISTING","IFRS3.PART_OF.REMUNERATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"CLASSIFICATION","context":"GENERIC","tested_point":"THREE_PAYMENTS_CLASSIFICATION","difficulty":"EXPERT","estimated_time_s":90,"lesson_id":"LS.IFRS3.000015","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"judgment"},"references":["IFRS 3 §51","IFRS 3 §52","IFRS 3 §B55"],"exercise":{"prompt":{"fr":"","en":"Classify each payment in the sale contract by its treatment.","es":""},"explanation":{"fr":"","en":"Rule to remember: the substance of each payment decides: exchange, remuneration (IFRS 3, para. B55) or settlement of a pre-existing relationship (IFRS 3).","es":""},"common_error":{"fr":"","en":"Treating all the payments in the contract alike.","es":""},"format":"CLASSIFICATION","categories":[{"id":"cons","text":{"fr":"","en":"Consideration transferred","es":""}},{"id":"rem","text":{"fr":"","en":"Post-combination remuneration","es":""}},{"id":"pre","text":{"fr":"","en":"Settlement of a pre-existing relationship","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Extra price paid to the sellers even if one of them leaves the business","es":""},"category":"cons"},{"id":"i2","text":{"fr":"","en":"Bonus forfeited automatically if the seller-director resigns within two years","es":""},"category":"rem"},{"id":"i3","text":{"fr":"","en":"Indemnity paid to end a licence contract between the acquirer and the target","es":""},"category":"pre"},{"id":"i4","text":{"fr":"","en":"Price of the shares paid in cash to the former shareholders","es":""},"category":"cons"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000120","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"DISCLOSURE_OBJECTIVE_BLANKS","difficulty":"BEGINNER","estimated_time_s":70,"lesson_id":"LS.IFRS3.000016","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-objective"},"references":["IFRS 3 §59","IFRS 3 §60"],"exercise":{"prompt":{"fr":"","en":"Complete the objective of the disclosures.","es":""},"explanation":{"fr":"","en":"Rule to remember: the objective concerns the nature and financial effect of the combination (IFRS 3, para. 59).","es":""},"common_error":{"fr":"","en":"Replacing the financial effect with a tax or legal effect.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The acquirer provides information enabling users to evaluate the {{nature}} and the {{effet}} of a combination.","es":""},"blanks":[{"id":"nature","mode":"CHOICE","choices":[{"id":"PRIX","text":{"fr":"","en":"profitability","es":""}},{"id":"RISK","text":{"fr":"","en":"duration","es":""}},{"id":"NAT","text":{"fr":"","en":"nature","es":""}}],"answer":"NAT"},{"id":"effet","mode":"CHOICE","choices":[{"id":"EFF","text":{"fr":"","en":"financial effect","es":""}},{"id":"FISC","text":{"fr":"","en":"tax effect","es":""}},{"id":"LEG","text":{"fr":"","en":"legal effect","es":""}}],"answer":"EFF"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000121","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"DISCLOSURE_COVERAGE","difficulty":"BEGINNER","estimated_time_s":35,"lesson_id":"LS.IFRS3.000016","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"understand"},"references":["IFRS 3 §59","IFRS 3 §60"],"exercise":{"prompt":{"fr":"","en":"A combination carried out after the end of the year and before the financial statements are authorised for issue is outside the scope of the disclosures.","es":""},"explanation":{"fr":"","en":"The objective also covers these combinations (IFRS 3, para. 59).","es":""},"common_error":{"fr":"","en":"Excluding combinations after the reporting date.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT","reserve":true},{"key":"LX.IFRS3.000122","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.OBJECTIVE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"HEALTHCARE","tested_point":"DISCLOSURE_SCOPE_CASE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS3.000016","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-objective"},"references":["IFRS 3 §59","IFRS 3 §60"],"exercise":{"prompt":{"fr":"","en":"On 20 January N+1, before the financial statements for N are authorised for issue, Brevane SA acquires a clinic. Must the financial statements for N include information on this combination?","es":""},"explanation":{"fr":"","en":"Rule to remember: combinations after the reporting date and before authorisation for issue are covered (IFRS 3, para. 59).","es":""},"common_error":{"fr":"","en":"Reserving the information for combinations of the year.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No, because the combination is after the end of N","es":""},"correct":false,"feedback":{"fr":"","en":"The objective covers combinations after the reporting date and before authorisation for issue (IFRS 3, para. 59).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, provided the price exceeds the goodwill of year N","es":""},"correct":false,"feedback":{"fr":"","en":"The course applies no such threshold for the disclosure objective (IFRS 3, para. 59; threshold: pedagogical assumption, not attributed to IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"Yes, because the combination is after the reporting date but before authorisation for issue","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No, the information is reserved for combinations in which control is obtained before the reporting date","es":""},"correct":false,"feedback":{"fr":"","en":"The objective also covers combinations after the reporting date (IFRS 3, para. 59).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000123","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.SPECIFIC_ITEMS"],"dimension":"CALCULATION","format":"CALCULATION","context":"MEDIA","tested_point":"PRO_FORMA_CALC","difficulty":"ADVANCED","estimated_time_s":120,"lesson_id":"LS.IFRS3.000016","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-specific"},"references":["IFRS 3 §B64"],"exercise":{"prompt":{"fr":"","en":"Valtor SA achieved €7,400,000 of revenue and €410,000 of profit. It acquired Lorvane SA during the year; before the acquisition date, Lorvane had achieved €2,100,000 of revenue and €160,000 of profit. Case convention: pro forma information is obtained by adding the target's data before the acquisition. Calculate pro forma revenue and profit.","es":""},"explanation":{"fr":"","en":"7,400,000 + 2,100,000 = €9,500,000; 410,000 + 160,000 = €570,000 (IFRS 3, para. B64).","es":""},"common_error":{"fr":"","en":"Adding the target's data after the acquisition date, already consolidated.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Acquirer revenue","es":""},"value":"7400000","unit":"EUR"},{"label":{"fr":"","en":"Acquirer profit","es":""},"value":"410000","unit":"EUR"},{"label":{"fr":"","en":"Target revenue before acquisition","es":""},"value":"2100000","unit":"EUR"},{"label":{"fr":"","en":"Target profit before acquisition","es":""},"value":"160000","unit":"EUR"}],"steps":[{"id":"a","label":{"fr":"","en":"Pro forma revenue","es":""},"answer":9500000,"tolerance":0,"unit":"EUR"},{"id":"b","label":{"fr":"","en":"Pro forma profit","es":""},"answer":570000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"a","meaning":{"fr":"","en":"Pro forma revenue","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquirer revenue","es":""},"value":7400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Target revenue before acquisition","es":""},"value":2100000,"unit":"EUR"}],"result":9500000,"unit":"EUR"},{"step":"b","meaning":{"fr":"","en":"Pro forma profit","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Acquirer profit","es":""},"value":410000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Target profit before acquisition","es":""},"value":160000,"unit":"EUR"}],"result":570000,"unit":"EUR"}],"references":["REF.IFRS3.B64"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000124","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.SPECIFIC_ITEMS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"SPECIFIC_ITEMS_CHOICE","difficulty":"ADVANCED","estimated_time_s":80,"lesson_id":"LS.IFRS3.000016","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-specific"},"references":["IFRS 3 §B64"],"exercise":{"prompt":{"fr":"","en":"Which items are among the information to be provided on each combination? (several answers)","es":""},"explanation":{"fr":"","en":"Rule to remember: main reasons and pro forma information are among the information on each combination (IFRS 3, para. B64).","es":""},"common_error":{"fr":"","en":"Adding information that comes from proposals not yet adopted.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The main reasons for the combination","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Pro forma information on revenue and profit as if the combinations had taken place at the start of the year","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The individual remuneration of the target's executives","es":""},"correct":false,"feedback":{"fr":"","en":"This remuneration is not among the reference points kept for the information on each combination (IFRS 3, para. B64).","es":""}},{"id":"D","text":{"fr":"","en":"The detail of the internal valuation method for each expected synergy","es":""},"correct":false,"feedback":{"fr":"","en":"This detail is not a reference point of the standard in force; it falls under 2024 proposals (2024 exposure draft).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000125","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.ADJUSTMENTS"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"PHARMA","tested_point":"ADJUSTMENT_DISCLOSURE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS3.000016","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-adjustments"},"references":["IFRS 3 §61"],"exercise":{"prompt":{"fr":"","en":"In N+1, Kestrel SA adjusts within the measurement period a provisional amount recognised in N for a combination of N. What does it provide in the notes for N+1?","es":""},"explanation":{"fr":"","en":"Rule to remember: the acquirer reports the adjustments, including for earlier combinations (IFRS 3, para. 61), and the provisional items and their reasons (IFRS 3).","es":""},"common_error":{"fr":"","en":"Presenting nothing for combinations of earlier years.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The provisional item, its reasons and the nature and amount of the adjustment","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing, because the combination belongs to the notes for N, already published","es":""},"correct":false,"feedback":{"fr":"","en":"Adjustments of the year relating to combinations of earlier years must be provided (IFRS 3, para. 61).","es":""}},{"id":"C","text":{"fr":"","en":"The amount of the adjustment, without explaining its nature","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of the adjustment and the reasons it was provisional must also be given (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"An error correction note under IAS 8 for each adjustment","es":""},"correct":false,"feedback":{"fr":"","en":"A measurement period adjustment is not an error correction (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000126","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.PROPOSED_CHANGES"],"dimension":"APPLICATION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"STANDARD_VS_PROPOSAL","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS3.000016","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-proposed"},"references":["IFRS 3"],"exercise":{"prompt":{"fr":"","en":"Classify each statement: requirement of the standard in force, or proposal of the 2024 exposure draft.","es":""},"explanation":{"fr":"","en":"Rule to remember: a proposal in the 2024 exposure draft is not a requirement until adopted (2024 exposure draft).","es":""},"common_error":{"fr":"","en":"Presenting a proposal as a requirement in force.","es":""},"format":"CLASSIFICATION","categories":[{"id":"norm","text":{"fr":"","en":"Requirement of the standard in force","es":""}},{"id":"prop","text":{"fr":"","en":"Proposal of the 2024 exposure draft","es":""}}],"items":[{"id":"i1","text":{"fr":"","en":"Provide information on the strategic rationale of acquisitions","es":""},"category":"prop"},{"id":"i2","text":{"fr":"","en":"Provide pro forma information as if the combinations had taken place at the start of the year","es":""},"category":"norm"},{"id":"i3","text":{"fr":"","en":"Report the actual performance of acquisitions against expectations","es":""},"category":"prop"},{"id":"i4","text":{"fr":"","en":"Report measurement period adjustments for combinations","es":""},"category":"norm"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS3.000127","source":"V2","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.PROPOSED_CHANGES","IFRS3.DISCLOSURE.SPECIFIC_ITEMS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"ED_IN_THE_NOTES","difficulty":"EXPERT","estimated_time_s":60,"lesson_id":"LS.IFRS3.000016","review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"judgment"},"references":["IFRS 3","IFRS 3 §B64"],"exercise":{"prompt":{"fr":"","en":"An audit committee asks whether the year's notes can already include the information on strategic rationale and synergies proposed by the 2024 exposure draft. Which answer is best supported?","es":""},"explanation":{"fr":"","en":"Rule to remember: the requirements in force prevail; an exposure draft is a proposal under redeliberation (2024 exposure draft).","es":""},"common_error":{"fr":"","en":"Treating an IASB proposal as an applicable requirement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are already required, because the IASB has published the exposure draft","es":""},"correct":false,"feedback":{"fr":"","en":"An exposure draft is a proposal, not a requirement (2024 exposure draft).","es":""}},{"id":"B","text":{"fr":"","en":"They replace the main reasons item from the next year-end","es":""},"correct":false,"feedback":{"fr":"","en":"The replacement is only a proposal under redeliberation, with no known application date (2024 exposure draft).","es":""}},{"id":"C","text":{"fr":"","en":"They are prohibited, because any information beyond the standard is excluded from the notes","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not prohibit useful additional information; it sets a minimum (IFRS 3, para. 59).","es":""}},{"id":"D","text":{"fr":"","en":"They are not required; the requirements in force apply","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000001","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000001","tested_point":"QST.IFRS3.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-scope"},"references":["IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"The formation of a joint arrangement (as defined in IFRS 11) is a business combination that the entity accounts for using the acquisition method of IFRS 3.","es":""},"explanation":{"fr":"","en":"IFRS 3 does not apply to the formation of a joint arrangement, to the acquisition of an asset or a group of assets that is not a business, or to the combination of entities or businesses under common control (IFRS 3, para. 2). The formation of a joint arrangement is therefore not accounted for using the acquisition method. Trap: Treating the acquisition method as the answer to any transaction that brings assets or entities together. Rule to remember: The formation of a joint arrangement is excluded from the scope of IFRS 3 (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Applying the acquisition method to a transaction that the standard excludes from its scope.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000002","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.OVERVIEW","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000002","tested_point":"QST.IFRS3.000002","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-scope"},"references":["IFRS 3 §2","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Which of the following transactions undertaken by Orféa SA is excluded from the scope of IFRS 3?","es":""},"explanation":{"fr":"","en":"The scope excludes the formation of a joint arrangement, the acquisition of an asset or a group of assets that is not a business, and the combination of entities or businesses under common control (IFRS 3, para. 2). Among the transactions offered, one matches the last of these exclusions: the combination of two subsidiaries of the same group. Trap: Looking for an exclusion in the method of payment or in a previous shareholding. Rule to remember: Combinations under common control are excluded from the scope of IFRS 3 (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Believing that settlement in shares or a previous shareholding is enough to take an acquisition of control out of scope.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The purchase of the shares of an operating company that gives Orféa control of that business, paid in cash","es":""},"correct":false,"feedback":{"fr":"","en":"Buying the shares of an operating company to take control of it is not one of the scope exclusions, which cover the formation of a joint arrangement, the acquisition of assets that do not form a business and combinations under common control (IFRS 3, para. 2). Rule to remember: A share purchase that gives control of a business is not a scope exclusion (IFRS 3, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"The acquisition of control of a business paid for by issuing new Orféa shares","es":""},"correct":false,"feedback":{"fr":"","en":"The method of payment is not one of the scope exclusions, which cover the formation of a joint arrangement, the acquisition of assets that do not form a business and combinations under common control (IFRS 3, para. 2). Paying in shares therefore does not take the transaction out of scope. Rule to remember: Settlement in shares does not exclude an acquisition of control from the scope of IFRS 3 (IFRS 3, para. 2).","es":""}},{"id":"C","text":{"fr":"","en":"The acquisition of control of a business in which Orféa already held a minority interest","es":""},"correct":false,"feedback":{"fr":"","en":"A minority interest already held does not take the acquisition of control out of scope, because it is not among the exclusions (IFRS 3, para. 2); it enters the goodwill calculation of a business combination achieved in stages (IFRS 3, para. 32). Rule to remember: An acquisition of control in stages is not excluded from the scope of IFRS 3 (IFRS 3, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"The combination of two subsidiaries controlled by the same parent both before and after the transaction","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000003","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.OVERVIEW"],"dimension":"ANALYSIS","context":"V1_QST.IFRS3.000003","tested_point":"QST.IFRS3.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-scope"},"references":["IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"A colleague summarises the scope of IFRS 3 for a business combination file. Which statement in the summary is wrong?","es":""},"explanation":{"fr":"","en":"The clarification from the 2011-2013 annual improvements (applied prospectively to annual periods beginning on or after 1 July 2014) covers the formation of all types of joint arrangements and applies only to the financial statements of the joint arrangement itself (IFRS 3, para. 2). The other scope exclusions are the acquisition of a group of assets that is not a business and the combination under common control (IFRS 3, para. 2). Trap: Reserving the exclusion for joint ventures. Rule to remember: The exclusion of the formation of a joint arrangement covers all types of joint arrangements (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Limiting the exclusion of the formation of a joint arrangement to joint ventures.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The acquisition of a group of assets that is not a business is outside the scope of IFRS 3.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the acquisition of an asset or a group of assets that is not a business is outside the scope (IFRS 3, para. 2). It therefore does not contain the error in the summary. Rule to remember: A group of assets that is not a business is outside the scope of IFRS 3 (IFRS 3, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"The exclusion of the formation of a joint arrangement covers joint ventures, not joint operations.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The combination of entities under common control is outside the scope of IFRS 3.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the combination of entities or businesses under common control is excluded from the scope (IFRS 3, para. 2). It therefore does not contain the error in the summary. Rule to remember: A combination under common control is outside the scope of IFRS 3 (IFRS 3, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"The clarification on joint arrangements applies to the financial statements of the joint arrangement itself.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the clarification on the formation of joint arrangements applies only to the financial statements of the joint arrangement itself (IFRS 3, para. 2). It therefore does not contain the error in the summary. Rule to remember: The clarification on joint arrangements concerns the financial statements of the joint arrangement (IFRS 3, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000004","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.COMMON_CONTROL"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000004","tested_point":"QST.IFRS3.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-common-control"},"references":["IFRS 3 §B1","IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"Two subsidiaries controlled by the same parent both before and after their combination form a combination under common control, outside the scope of IFRS 3, provided that this common control is not transitory.","es":""},"explanation":{"fr":"","en":"In a combination under common control, all the combining entities or businesses are ultimately controlled by the same party or parties both before and after the transaction, and that control is not transitory (IFRS 3, para. B1); such a combination is outside the scope of IFRS 3 (IFRS 3, para. 2). Trap: Concluding to common control when the common party's control is brief. Rule to remember: Common control requires the same controlling party before and after the transaction, not transitory (IFRS 3, para. B1).","es":""},"common_error":{"fr":"","en":"Concluding to common control without checking that the common party controls both before and after the transaction.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000005","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.COMMON_CONTROL"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000005","tested_point":"QST.IFRS3.000005","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-common-control"},"references":["IFRS 3 §B1","IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"Two companies, Nacre SA and Opale SA, are owned in equal parts by Mr Arnaud and Ms Bellec, who exercise their control together under a contractual arrangement. Nacre and Opale merge. Case assumption: before and after the transaction this group of individuals controls the whole, and that control is not transitory. What follows under IFRS 3?","es":""},"explanation":{"fr":"","en":"A group of individuals acting together under a contractual arrangement can be the controlling party; if control is exercised by the same parties before and after the transaction and is not transitory, the combination is under common control (IFRS 3, para. B1) and outside the scope of IFRS 3 (IFRS 3, para. 2). “Transitory” is not defined: it is a judgement. Trap: Requiring a single entity or a numerical duration. Rule to remember: Common control can be exercised by a group of individuals, with no set duration threshold (IFRS 3, para. B1).","es":""},"common_error":{"fr":"","en":"Requiring the common party to be a company, or looking for a minimum duration to judge control not transitory.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The group of individuals acting together can be the controlling party: the combination is under common control and outside the scope of IFRS 3.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Common control is absent, because the controlling party must be a single legal entity and not a group of natural persons bound by a contractual arrangement.","es":""},"correct":false,"feedback":{"fr":"","en":"The controlling party can be a group of individuals acting together under a contractual arrangement (IFRS 3, para. B1). Requiring a single entity adds a condition that the text does not set. Rule to remember: A group of individuals acting together can be the common controlling party (IFRS 3, para. B1).","es":""}},{"id":"C","text":{"fr":"","en":"The combination falls within the scope of IFRS 3, because two natural persons cannot be a controlling party.","es":""},"correct":false,"feedback":{"fr":"","en":"A group of individuals acting together under a contractual arrangement can be the controlling party (IFRS 3, para. B1); denying that status to natural persons would wrongly lead to applying the acquisition method. Rule to remember: Common control can be exercised by a group of individuals (IFRS 3, para. B1).","es":""}},{"id":"D","text":{"fr":"","en":"The combination is under common control, but the standard sets a minimum duration beyond which control stops being transitory.","es":""},"correct":false,"feedback":{"fr":"","en":"The term “transitory” is not defined: judging whether control is transitory is a matter of judgement, not of a duration set by the standard (IFRS 3, para. B1). Looking for a numerical threshold attributes to the standard a rule it does not contain. Rule to remember: Whether control is transitory is a judgement, with no minimum duration (IFRS 3, para. B1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000006","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.JOINT_ARRANGEMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000006","tested_point":"QST.IFRS3.000006","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-joint"},"references":["IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"The Vallon and Sérac groups set up a joint entity whose control they share, each contributing a business to it. The joint entity prepares its own financial statements. How is the formation of this joint arrangement treated in those financial statements under IFRS 3?","es":""},"explanation":{"fr":"","en":"IFRS 3 does not apply to the formation of a joint arrangement; the clarification in the 2011-2013 annual improvements covers the formation of all types of joint arrangements and applies only to the financial statements of the joint arrangement itself (IFRS 3, para. 2). The joint entity's financial statements therefore do not apply the acquisition method to its formation. Trap: Extending the clarification to the investors' financial statements or limiting it to one type of arrangement. Rule to remember: The formation of a joint arrangement is excluded from the scope of IFRS 3 in the arrangement's own financial statements, whatever its type (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Applying the acquisition method to the formation of the joint arrangement, or limiting the exclusion to one type of arrangement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is excluded from the scope of IFRS 3, whatever the type of joint arrangement.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is excluded from the scope when the arrangement is a joint venture, but not when it is a joint operation.","es":""},"correct":false,"feedback":{"fr":"","en":"The clarification covers the formation of all types of joint arrangements, joint ventures and joint operations alike (IFRS 3, para. 2); introducing a distinction between them adds a condition that is not there. Rule to remember: The exclusion covers all types of joint arrangements (IFRS 3, para. 2).","es":""}},{"id":"C","text":{"fr":"","en":"It falls within IFRS 3: each contributor is the acquirer of the business contributed by the other.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 3 does not apply to the formation of a joint arrangement (IFRS 3, para. 2); seeing each contribution as a reciprocal acquisition amounts to applying the acquisition method to an excluded transaction. Rule to remember: The formation of a joint arrangement is excluded from the scope of IFRS 3 (IFRS 3, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"It is excluded from the scope in the financial statements of the joint entity and, in the same way, in those of each investor group.","es":""},"correct":false,"feedback":{"fr":"","en":"The clarification applies only to the financial statements of the joint arrangement itself (IFRS 3, para. 2); extending it to the investors' financial statements goes beyond what the text provides. Rule to remember: The exclusion clarified in 2014 concerns the financial statements of the joint arrangement (IFRS 3, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000007","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.ASSET_ACQUISITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS3.000004","tested_point":"VG.IFRS3.000004","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-asset"},"references":["IFRS 3 §2","IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Maréchal SA buys an office building let to several tenants, without taking over any staff or management process. Case assumption: management has concluded that this set is not a business. How is the transaction treated under IFRS 3?","es":""},"explanation":{"fr":"","en":"IFRS 3 does not apply to the acquisition of an asset or a group of assets that is not a business (IFRS 3, para. 2). A business comprises inputs and processes applied to those inputs (IFRS 3, para. B7); in the case, the building is acquired without staff or a management process, and management concludes that it is not a business. Trap: Applying the acquisition method and recognising goodwill on any purchase of a let building. Rule to remember: The acquisition of a group of assets that is not a business is outside the scope of IFRS 3 (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Applying the acquisition method, with goodwill, to the purchase of a group of assets that is not a business.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Maréchal applies the acquisition method and recognises goodwill for the difference between the price and the value of the building.","es":""},"correct":false,"feedback":{"fr":"","en":"According to the case this set is not a business, and IFRS 3 does not apply to the acquisition of a group of assets that is not one (IFRS 3, para. 2): the acquisition method, and hence the goodwill it brings out, does not apply. Rule to remember: The acquisition of a group of assets that is not a business is outside the scope of IFRS 3 (IFRS 3, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"The transaction is outside the scope of IFRS 3: it is the acquisition of an asset, not of a business.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Maréchal applies IFRS 3, because the building has tenants and therefore generates outputs.","es":""},"correct":false,"feedback":{"fr":"","en":"Outputs are not enough to make a business: a business comprises inputs and processes applied to those inputs (IFRS 3, para. B7). Here no staff or management process is taken over, and the transaction stays outside the scope (IFRS 3, para. 2). Rule to remember: Rents received do not make a building a business (IFRS 3, para. B7).","es":""}},{"id":"D","text":{"fr":"","en":"Maréchal applies IFRS 3, because it obtains control of a set of lease contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"Obtaining control of a set of contracts is not enough to bring a transaction into IFRS 3: the acquisition of a group of assets that is not a business is outside the scope (IFRS 3, para. 2). Rule to remember: Whether the acquired set is a business determines whether IFRS 3 applies (IFRS 3, para. 2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000008","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.ASSET_ACQUISITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000008","tested_point":"QST.IFRS3.000008","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-asset"},"references":["IFRS 3 §2","IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Which statements about the acquisition of a group of assets are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"IFRS 3 does not apply to the acquisition of an asset or a group of assets that is not a business (IFRS 3, para. 2), and a business comprises inputs and processes applied to those inputs (IFRS 3, para. B7). Outputs have not been required since the 2018 amendments; IFRS 3 goodwill therefore does not arise from a group of assets. Trap: Reasoning on the value of an asset or on the presence of revenue rather than on inputs and processes. Rule to remember: A group of assets that is not a business is outside the scope of IFRS 3 (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Requiring outputs to conclude that a set is a business, or expecting goodwill on a group of assets.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 3 does not apply to the acquisition of an asset or a group of assets that is not a business.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An acquired set is a business when it includes an asset of significant value, even in the absence of processes.","es":""},"correct":false,"feedback":{"fr":"","en":"The value of an asset does not replace processes: a business comprises inputs and processes applied to those inputs (IFRS 3, para. B7). A set reduced to a valuable asset is a group of assets, whose acquisition is outside the scope (IFRS 3, para. 2). Rule to remember: A valuable asset without processes does not make a business (IFRS 3, para. B7).","es":""}},{"id":"C","text":{"fr":"","en":"The acquisition of a group of assets that is not a business gives rise to goodwill under IFRS 3.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill arises from the acquisition method, which does not apply to the acquisition of a group of assets that is not a business (IFRS 3, para. 2). Expecting goodwill amounts to applying the standard to a transaction it excludes. Rule to remember: No acquisition method, hence no IFRS 3 goodwill, for a group of assets (IFRS 3, para. 2).","es":""}},{"id":"D","text":{"fr":"","en":"A business comprises inputs and processes applied to those inputs.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A set that does not yet generate outputs at the acquisition date is not a business.","es":""},"correct":false,"feedback":{"fr":"","en":"Since the 2018 amendments, inputs and processes need to be capable of contributing to the creation of outputs, without outputs being required (IFRS 3, para. B7). Requiring outputs at the acquisition date reflects the former reading of the definition. Rule to remember: The absence of outputs does not, in itself, prevent a conclusion that the set is a business (IFRS 3, para. B7).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000009","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.ASSET_ACQUISITION"],"dimension":"APPLICATION","context":"V1_VG.IFRS3.000004","tested_point":"VG.IFRS3.000004","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-asset"},"references":["IFRS 3 §2","IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Carbo SA acquires three identical machines from a bankrupt manufacturer, without taking over any employees, customer contracts or production process. Case assumption: management concludes that this set is not a business. What consequence does it draw under IFRS 3?","es":""},"explanation":{"fr":"","en":"The set acquired includes neither processes nor employees: management concludes that it is not a business. IFRS 3 does not apply to the acquisition of an asset or a group of assets that is not a business (IFRS 3, para. 2), the definition of a business resting on inputs and processes applied to those inputs (IFRS 3, para. B7). Trap: Deducing that IFRS 3 applies from control of the machines alone. Rule to remember: The acquisition of a group of assets that is not a business is outside the scope of IFRS 3 (IFRS 3, para. 2).","es":""},"common_error":{"fr":"","en":"Deducing from the obtaining of control of assets that the acquisition method applies.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies the acquisition method, because it obtains control of the three machines.","es":""},"correct":false,"feedback":{"fr":"","en":"Obtaining control of assets is not enough: IFRS 3 does not apply to the acquisition of a group of assets that is not a business (IFRS 3, para. 2). The acquisition method is therefore not applicable here. Rule to remember: Control of a group of assets does not trigger the acquisition method (IFRS 3, para. 2).","es":""}},{"id":"B","text":{"fr":"","en":"It applies IFRS 3, because the machines are inputs and production processes can be added later by Carbo's management.","es":""},"correct":false,"feedback":{"fr":"","en":"A business comprises inputs and processes applied to those inputs (IFRS 3, para. B7): machines are inputs, but no process is taken over here, and processes added later do not change what was acquired. Rule to remember: The assessment concerns the set acquired at the acquisition date (IFRS 3, para. B7).","es":""}},{"id":"C","text":{"fr":"","en":"It does not apply IFRS 3: the transaction is the acquisition of a group of assets, excluded from the scope of the standard.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It applies IFRS 3 without goodwill, because the price paid equals the fair value of the machines.","es":""},"correct":false,"feedback":{"fr":"","en":"A price equal to fair value is not what determines the scope: the acquisition of a group of assets that is not a business is outside the scope of IFRS 3 (IFRS 3, para. 2). The amount of any goodwill plays no part in this reasoning. Rule to remember: The scope depends on the nature of the set acquired, not on the price difference (IFRS 3, para. 2).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS3.000010","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000010","tested_point":"QST.IFRS3.000010","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-elements"},"references":["IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"For an acquired set to be a business, it must already generate outputs (revenue) at the acquisition date.","es":""},"explanation":{"fr":"","en":"A business comprises inputs (economic resources) and processes applied to those inputs; since the 2018 amendments (applicable to annual periods beginning on or after 1 January 2020), they need to be capable of contributing to the creation of outputs, and outputs are not required (IFRS 3, para. B7). Trap: Requiring revenue at the acquisition date, which reflects the former reading of the definition. Rule to remember: Outputs are not required for an acquired set to be a business (IFRS 3, para. B7).","es":""},"common_error":{"fr":"","en":"Requiring revenue at the acquisition date in order to recognise a business.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000011","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000011","tested_point":"QST.IFRS3.000011","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-elements"},"references":["IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Berlue SA acquires machinery, patents and a team that operates them; no product has been sold yet. Which statements are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"A business comprises inputs and processes applied to those inputs; since 2018 they need to be capable of contributing to the creation of outputs, and outputs are not required. Accounting, billing and payroll are generally not processes that serve to create outputs (IFRS 3, para. B7). Trap: Basing the conclusion on the presence of revenue or on administrative functions. Rule to remember: A business is recognised by its inputs and processes, not by its revenue (IFRS 3, para. B7).","es":""},"common_error":{"fr":"","en":"Counting accounting and payroll as processes creating outputs, or requiring outputs.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The accounting and payroll of the acquired company are generally processes that serve to create outputs.","es":""},"correct":false,"feedback":{"fr":"","en":"Accounting, billing and payroll are generally not processes that serve to create outputs (IFRS 3, para. B7). Counting them as such artificially inflates the share of processes in the set. Rule to remember: Accounting, billing and payroll are generally not processes creating outputs (IFRS 3, para. B7).","es":""}},{"id":"B","text":{"fr":"","en":"The machinery and patents are economic resources (inputs) to which the team applies processes.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Without outputs at the acquisition date, the set is a group of assets and not a business.","es":""},"correct":false,"feedback":{"fr":"","en":"Outputs are not required: inputs and processes need to be capable of contributing to the creation of outputs (IFRS 3, para. B7). Concluding that the set is a group of assets for lack of outputs reflects the former reading. Rule to remember: The absence of outputs is not enough to rule out a business (IFRS 3, para. B7).","es":""}},{"id":"D","text":{"fr":"","en":"The absence of outputs at this stage does not prevent a conclusion that the set is a business.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000012","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.ELEMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000012","tested_point":"QST.IFRS3.000012","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-elements"},"references":["IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Lumen SA acquires an online sales platform: website, customer database, servers, and a development and support team. The platform's revenue is still nil (launch planned). Case assumption: the team operates the servers and the database. Which reading is consistent with the definition of a business?","es":""},"explanation":{"fr":"","en":"The website, database and servers are inputs; the team applies processes to them. A business comprises inputs and processes applied to those inputs, which need to be capable of contributing to the creation of outputs, without outputs being required (IFRS 3, para. B7). Trap: Concluding from the existence of revenue rather than from the inputs and processes. Rule to remember: The absence of outputs does not stand in the way of a business (IFRS 3, para. B7).","es":""},"common_error":{"fr":"","en":"Concluding to a group of assets because revenue is nil.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is not a business: without revenue, the set is a group of assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Outputs are not required: inputs and processes need to be capable of contributing to the creation of outputs (IFRS 3, para. B7). Concluding to a group of assets for lack of revenue reflects the former reading. Rule to remember: The absence of revenue does not, in itself, rule out a business (IFRS 3, para. B7).","es":""}},{"id":"B","text":{"fr":"","en":"It is a business because the platform's billing and accounting are already in place.","es":""},"correct":false,"feedback":{"fr":"","en":"Accounting, billing and payroll are generally not processes that serve to create outputs (IFRS 3, para. B7): they are not enough to support the conclusion. What counts are the inputs and the processes the team applies. Rule to remember: Billing is generally not a process that creates outputs (IFRS 3, para. B7).","es":""}},{"id":"C","text":{"fr":"","en":"It is a business because the commercial launch of the platform is planned within the year: the expected outputs are enough to show it.","es":""},"correct":false,"feedback":{"fr":"","en":"Expected outputs do not replace the analysis of inputs and processes, which need to be capable of contributing to the creation of outputs (IFRS 3, para. B7). The conclusion rests on what is acquired, not on what is hoped for. Rule to remember: The assessment concerns the inputs and processes acquired (IFRS 3, para. B7).","es":""}},{"id":"D","text":{"fr":"","en":"The set comprises inputs and processes applied to those inputs; the absence of outputs does not prevent it from being a business.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000013","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.SUBSTANTIVE_PROCESS","IFRS3.BUSINESS.ELEMENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000013","tested_point":"QST.IFRS3.000013","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-elements"},"references":["IFRS 3 §B8","IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Under the definition of a business, what must the acquired set of activities and assets include at a minimum?","es":""},"explanation":{"fr":"","en":"The acquired set must include at a minimum an input and a substantive process that together significantly contribute to the ability to create outputs, outputs not being required (IFRS 3, para. B8). A business comprises inputs and processes applied to those inputs (IFRS 3, para. B7). Trap: Replacing the substantive process by revenue or by administrative functions. Rule to remember: The acquired set must contain at least one input and a substantive process (IFRS 3, para. B8).","es":""},"common_error":{"fr":"","en":"Believing that assets, revenue or accounting are enough without a substantive process.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At least one input and a substantive process that together significantly contribute to the ability to create outputs.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Outputs (revenue) at the acquisition date and at least one customer under contract with the acquiree, whatever the nature of the activity.","es":""},"correct":false,"feedback":{"fr":"","en":"Outputs are not required: inputs and processes need to be capable of contributing to their creation (IFRS 3, para. B7). Requiring revenue and a customer under contract adds a condition that is not in the definition. Rule to remember: The set must contain an input and a substantive process, not revenue (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"An accounting, billing or payroll process applied to acquired assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Accounting, billing and payroll are generally not processes that serve to create outputs (IFRS 3, para. B7). Such a process therefore does not amount to the substantive process required. Rule to remember: Accounting, billing and payroll are generally not processes creating outputs (IFRS 3, para. B7).","es":""}},{"id":"D","text":{"fr":"","en":"Tangible or intangible assets, without processes being necessary.","es":""},"correct":false,"feedback":{"fr":"","en":"A business comprises inputs and processes applied to those inputs (IFRS 3, para. B7), and the acquired set must contain at a minimum an input and a substantive process (IFRS 3). Assets on their own, without processes, do not meet this definition. Rule to remember: At least one substantive process is needed in addition to an input (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000014","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.SUBSTANTIVE_PROCESS","IFRS3.BUSINESS.ELEMENTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000014","tested_point":"QST.IFRS3.000014","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-elements"},"references":["IFRS 3 §B12B","IFRS 3 §B7"],"exercise":{"prompt":{"fr":"","en":"Cobalt SA acquires Pistil SA, a biotechnology company in development: laboratories, patents and an organised team of researchers that develops the products. No product is sold yet. Case assumption: the team is critical to the ability to turn the acquired patents into outputs. What does Cobalt conclude about the process?","es":""},"explanation":{"fr":"","en":"Without outputs at the acquisition date, an acquired process is substantive only if it is critical to the ability to develop or convert an acquired input into outputs and the acquired inputs include both an organised workforce and other inputs it could develop, here the patents (IFRS 3, para. B12B). Accounting or payroll are generally not processes that create outputs (IFRS 3, para. B7). Trap: Requiring outputs or settling for an administrative function. Rule to remember: Without outputs, a critical process and an organised workforce are needed (IFRS 3).","es":""},"common_error":{"fr":"","en":"Requiring outputs to recognise a substantive process, or finding one in administrative functions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The process is not substantive: a substantive process presupposes that outputs already exist at the acquisition date, which is not the case for Pistil, whose products are still in development.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of outputs does not rule out a substantive process: outputs are not required (IFRS 3, para. B7), and an acquired process can be substantive if it is critical to converting an input into outputs and the inputs include an organised workforce (IFRS 3). Rule to remember: A substantive process can exist without outputs (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"The process can be substantive: without outputs, it is so if it is critical to turn an acquired input into outputs and the inputs include an organised workforce.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The process is substantive because Pistil keeps structured accounting records and pays its researchers.","es":""},"correct":false,"feedback":{"fr":"","en":"Accounting and payroll are generally not processes that serve to create outputs (IFRS 3, para. B7): they are not the substantive process. That lies in the team that converts the patents into outputs. Rule to remember: Accounting and payroll are generally not processes creating outputs (IFRS 3, para. B7).","es":""}},{"id":"D","text":{"fr":"","en":"The process is substantive because Cobalt holds the patents and the laboratories, even if the researchers do not form an organised team.","es":""},"correct":false,"feedback":{"fr":"","en":"Without outputs, the acquired inputs must also include an organised workforce (IFRS 3): holding the patents without an organised team is not enough. The judgement on whether the process is substantive rests on this condition. Rule to remember: Without outputs, an organised workforce is a condition of the substantive process (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000016","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.CONCENTRATION_TEST","IFRS3.SCOPE.ASSET_ACQUISITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000016","tested_point":"QST.IFRS3.000016","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-asset"},"references":["IFRS 3 §B7A","IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"The acquirer may choose, business combination by business combination, whether or not to apply the concentration test: its application is optional.","es":""},"explanation":{"fr":"","en":"The acquirer may choose, transaction by transaction, to apply a test that allows it to conclude without further analysis that the acquired set is not a business (IFRS 3). In that case, the acquisition of a group of assets that is not a business is outside the scope of IFRS 3 (IFRS 3, para. 2). Trap: Treating the test as a required step in every analysis. Rule to remember: The concentration test is optional and chosen transaction by transaction (IFRS 3).","es":""},"common_error":{"fr":"","en":"Believing that the concentration test must be applied to every acquisition.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000017","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.CONCENTRATION_TEST","IFRS3.SCOPE.ASSET_ACQUISITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000017","tested_point":"QST.IFRS3.000017","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-asset"},"references":["IFRS 3 §B7B","IFRS 3 §2"],"exercise":{"prompt":{"fr":"","en":"Hexa SA acquires an office building (land and building) let to one tenant, together with a property management contract. It elects to apply the concentration test. Case assumption: Hexa judges that substantially all of the fair value of the gross assets acquired is concentrated in the building. What does it conclude?","es":""},"explanation":{"fr":"","en":"The concentration test is met when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; a single identifiable asset includes inseparable assets, such as land and its building (IFRS 3). The set is then not a business, and its acquisition is outside the scope of IFRS 3 (IFRS 3, para. 2). Professional judgement: the standard does not quantify “substantially all”: Hexa assesses this criterion. Trap: Seeing two assets in a building, or concluding to a business despite a test that is met. Rule to remember: A concentration test that is met means the set is not a business (IFRS 3).","es":""},"common_error":{"fr":"","en":"Concluding to a business although the concentration test is met.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The test is met: the land and the building form a single identifiable asset, and the set is not a business without further analysis.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The test is met, so the set is a business and the acquisition method applies to the building and the property management contract.","es":""},"correct":false,"feedback":{"fr":"","en":"A test that is met leads to the opposite conclusion: the set is not a business (IFRS 3), and the acquisition of a group of assets that is not one is outside the scope of IFRS 3 (IFRS 3, para. 2). Rule to remember: Test met: the set is not a business (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"The test is not met, because the land and the building are two separate assets.","es":""},"correct":false,"feedback":{"fr":"","en":"A single identifiable asset includes inseparable assets, for example land and its building (IFRS 3): both are treated as one asset for the concentration. Rule to remember: Land and its building form a single identifiable asset for the test (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"The test is met, but Hexa must still analyse whether processes are applied to the building before it can conclude.","es":""},"correct":false,"feedback":{"fr":"","en":"When the test is met, one concludes without further analysis that the set is not a business (IFRS 3): examining the processes afterwards is not necessary. Rule to remember: A test that is met removes the need to continue the business analysis (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000018","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.IDENTIFICATION","IFRS3.ACQUIRER.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000018","tested_point":"QST.IFRS3.000018","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-acquirer"},"references":["IFRS 3 §7","IFRS 3 §B15"],"exercise":{"prompt":{"fr":"","en":"When the business combination is effected by issuing securities, the entity that issues the securities is identified as the acquirer without any need to analyse control.","es":""},"explanation":{"fr":"","en":"The acquirer is identified by applying the IFRS 10 guidance on control: it is the entity that obtains control of the acquiree (IFRS 3, para. 7). If that guidance does not clearly indicate the acquirer, additional guidance applies, and the entity that issues the securities is not always the acquirer (IFRS 3, para. B15). Trap: Naming the acquirer on the basis of the issue of securities or of legal form. Rule to remember: The acquirer is the entity that obtains control, not necessarily the one that issues the securities (IFRS 3, para. 7).","es":""},"common_error":{"fr":"","en":"Naming the issuing entity as the acquirer without analysing control.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000019","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.IDENTIFICATION","IFRS3.ACQUIRER.INDICATORS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000019","tested_point":"QST.IFRS3.000019","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-acquirer"},"references":["IFRS 3 §6","IFRS 3 §7","IFRS 3 §B15"],"exercise":{"prompt":{"fr":"","en":"For each business combination, one of the combining entities must be identified as the acquirer. On what basis is this identification made in the first place?","es":""},"explanation":{"fr":"","en":"For each business combination, one of the combining entities must be identified as the acquirer (IFRS 3, para. 6). Identification applies the IFRS 10 guidance on control; if that guidance does not clearly indicate the acquirer, additional guidance applies (IFRS 3, para. 7), such as the share of voting rights or the terms of the exchange of securities (IFRS 3, para. B15). Trap: Starting from legal form, the means of payment or a secondary indicator. Rule to remember: The acquirer is identified first by the analysis of control (IFRS 3, para. 7).","es":""},"common_error":{"fr":"","en":"Naming the acquirer from legal form or the means of payment rather than from control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the legal form of the transaction: the acquirer is the absorbing entity, the one that survives the transaction.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal form is not the starting point: the acquirer is identified by the IFRS 10 guidance on control (IFRS 3, para. 7). Naming the absorbing entity without analysing control leads to a wrong acquirer. Rule to remember: The acquirer is the one that obtains control, not the one that survives legally (IFRS 3, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"On the split of the voting rights of the combined entity between the former owners of each of the combining entities.","es":""},"correct":false,"feedback":{"fr":"","en":"This is one of the additional indicators, which apply if the guidance on control does not clearly indicate the acquirer (IFRS 3, para. 7): the acquirer is then generally the entity whose owners hold the largest share of the voting rights of the combined entity (IFRS 3, para. B15). It is not the starting point. Rule to remember: Voting rights are an additional indicator, after the analysis of control (IFRS 3, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"On the means of payment: the acquirer is the entity that pays in cash, not the one that issues securities.","es":""},"correct":false,"feedback":{"fr":"","en":"The means of payment is not the starting point: identification follows the guidance on control (IFRS 3, para. 7), and the entity that issues the securities is not always the acquirer (IFRS 3, para. B15). The terms of the exchange of securities are one factor among others when control does not clearly indicate the acquirer. Rule to remember: The means of payment does not identify the acquirer (IFRS 3, para. B15).","es":""}},{"id":"D","text":{"fr":"","en":"On the IFRS 10 guidance on control: the acquirer is the entity that obtains control of the acquiree.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000020","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.IDENTIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000020","tested_point":"QST.IFRS3.000020","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-acquirer"},"references":["IFRS 3 §6","IFRS 3 §7"],"exercise":{"prompt":{"fr":"","en":"Mistral SA acquires 90% of the voting rights of Zéphyr SA, paying in cash. Zéphyr is larger than Mistral in assets and revenue. Case assumption: under the IFRS 10 guidance, Mistral obtains control of Zéphyr. A trainee proposes naming Zéphyr as the acquirer because it is the larger. How should you answer?","es":""},"explanation":{"fr":"","en":"For each business combination, one of the combining entities must be identified as the acquirer (IFRS 3, para. 6), by applying the IFRS 10 guidance on control: it is the entity that obtains control of the acquiree; additional guidance applies if that guidance does not clearly indicate the acquirer (IFRS 3, para. 7). Here Mistral obtains control of Zéphyr: relative size does not reverse that conclusion. Trap: Applying a single indicator, size, as a compulsory rule. Rule to remember: The acquirer is the entity that obtains control, even if the other is larger (IFRS 3, para. 7).","es":""},"common_error":{"fr":"","en":"Naming the larger entity as the acquirer although the other entity obtains control.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Zéphyr is the acquirer, because the acquirer is the larger entity, measured by its assets, revenues or profit.","es":""},"correct":false,"feedback":{"fr":"","en":"Relative size belongs to the additional guidance, which applies if the guidance on control does not clearly indicate the acquirer (IFRS 3, para. 7). Here control is established: making size a compulsory criterion amounts to applying a single indicator as a rule. Rule to remember: Control prevails over size in naming the acquirer (IFRS 3, para. 7).","es":""}},{"id":"B","text":{"fr":"","en":"One must first examine the composition of Zéphyr's board and the terms of payment before the acquirer can be named.","es":""},"correct":false,"feedback":{"fr":"","en":"The additional guidance applies if the guidance on control does not clearly indicate the acquirer (IFRS 3, para. 7). The case establishes Mistral's control: waiting for an examination of the board adds an unnecessary step. Rule to remember: When control identifies the acquirer, the additional indicators are not needed (IFRS 3, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"Mistral is the acquirer: it obtains control, and relative size does not override the analysis of control.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Mistral and Zéphyr are each other's acquirer, since each contributes assets and liabilities to the combination.","es":""},"correct":false,"feedback":{"fr":"","en":"For each business combination, one of the combining entities must be identified as the acquirer (IFRS 3, para. 6). Naming both as reciprocal acquirers contradicts that requirement. Rule to remember: A business combination has one acquirer identified among the combining entities (IFRS 3, para. 6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000021","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.INDICATORS","IFRS3.NCI.MEASUREMENT_CHOICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000021","tested_point":"QST.IFRS3.000021","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-indicators"},"references":["IFRS 3 §B15","IFRS 3 §19"],"exercise":{"prompt":{"fr":"","en":"The guidance on control does not clearly indicate the acquirer. Which factors are among the additional guidance to consider? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"When control does not clearly indicate the acquirer, it is generally the entity whose owners hold the largest share of the voting rights in the combined entity; other factors are the composition of the governing body and senior management, the existence of a large minority and the terms of the exchange of securities (IFRS 3, para. B15). The choice of method for the non-controlling interest belongs to another step (IFRS 3). Trap: Using legal form or a measurement choice as an indicator. Rule to remember: Voting rights, management and the exchange of securities inform the choice of the acquirer (IFRS 3, para. B15).","es":""},"common_error":{"fr":"","en":"Taking legal form or a measurement choice for an indicator of the acquirer.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The share of the voting rights in the combined entity held by the owners of each combining entity.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The legal form of the company that survives the merger.","es":""},"correct":false,"feedback":{"fr":"","en":"Legal form is not among the factors cited: the acquirer is generally the entity whose owners hold the largest share of the voting rights, and the entity that issues the securities is not always the acquirer (IFRS 3, para. B15). Rule to remember: The legal form of the surviving entity is not an indicator of the acquirer (IFRS 3, para. B15).","es":""}},{"id":"C","text":{"fr":"","en":"The composition of the governing body and senior management of the combined entity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The choice of the method for measuring the non-controlling interest.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice between fair value and the proportionate share of identifiable net assets concerns the measurement of the non-controlling interest (IFRS 3); it is not among the factors for identifying the acquirer (IFRS 3, para. B15). Rule to remember: The measurement of the non-controlling interest does not identify the acquirer (IFRS 3).","es":""}},{"id":"E","text":{"fr":"","en":"The terms of the exchange of securities.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000023","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.ACQUISITION_DATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000023","tested_point":"QST.IFRS3.000023","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-date"},"references":["IFRS 3 §8","IFRS 3 §9"],"exercise":{"prompt":{"fr":"","en":"Under IFRS 3, what is the acquisition date of a business combination?","es":""},"explanation":{"fr":"","en":"The acquisition date is the date on which the acquirer obtains control of the acquiree (IFRS 3, para. 8). It is generally the closing date (transfer of the consideration, acquisition of the assets, assumption of the liabilities), but control can be obtained earlier or later; the acquirer considers all relevant facts and circumstances (IFRS 3, para. 9). Trap: Using the signing or announcement date. Rule to remember: The acquisition date is when control is obtained (IFRS 3, para. 8).","es":""},"common_error":{"fr":"","en":"Using the date the agreement is signed or the project announced as the acquisition date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The date the acquisition agreement is signed, since that agreement binds both parties.","es":""},"correct":false,"feedback":{"fr":"","en":"The signing date is not necessarily the date of control: the acquisition date is generally the closing date, but control can be obtained earlier or later (IFRS 3, para. 9). Using the signing date repeats the classic dating error. Rule to remember: The acquisition date is when control is obtained, not when the agreement is signed (IFRS 3, para. 8).","es":""}},{"id":"B","text":{"fr":"","en":"The date the business combination project is publicly announced to shareholders and the markets.","es":""},"correct":false,"feedback":{"fr":"","en":"A public announcement does not transfer control: the acquisition date is when the acquirer obtains control (IFRS 3, para. 8), assessed on all relevant facts and circumstances (IFRS 3, para. 9). Rule to remember: The announcement of a project does not set the acquisition date (IFRS 3, para. 8).","es":""}},{"id":"C","text":{"fr":"","en":"The date of the acquirer's reporting period end that immediately follows the conclusion of the transaction.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition date does not depend on the acquirer's accounting calendar: it is when it obtains control of the acquiree (IFRS 3, para. 8), generally the closing date of the transaction (IFRS 3, para. 9). Rule to remember: The reporting period end does not set the acquisition date (IFRS 3, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"The date on which the acquirer obtains control of the acquiree.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000024","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.ACQUISITION_DATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000024","tested_point":"QST.IFRS3.000024","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-date"},"references":["IFRS 3 §9"],"exercise":{"prompt":{"fr":"","en":"The acquisition date can precede the closing date of the transaction, for example when a written agreement gives the acquirer control earlier.","es":""},"explanation":{"fr":"","en":"The acquisition date is generally the closing date, but control can be obtained earlier or later, for example when a written agreement provides for another date; the acquirer considers all relevant facts and circumstances (IFRS 3, para. 9). Trap: Mechanically using the closing date. Rule to remember: The closing date is the usual acquisition date, not an automatic one (IFRS 3, para. 9).","es":""},"common_error":{"fr":"","en":"Automatically using the closing date without examining the facts and circumstances.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000025","standard_id":"IFRS3","concept_ids":["IFRS3.ACQUIRER.ACQUISITION_DATE"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000025","tested_point":"QST.IFRS3.000025","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-date"},"references":["IFRS 3 §8","IFRS 3 §9"],"exercise":{"prompt":{"fr":"","en":"Quasar SA signs the agreement to acquire Pavot SA on 15 November. The price and the shares are transferred (closing) on 20 December. Case assumption: a written agreement provides that Quasar directs Pavot's activities from 1 December, and the relevant facts and circumstances confirm that it has control on that date. Quasar's reporting period ends on 31 December. What is the acquisition date?","es":""},"explanation":{"fr":"","en":"The acquisition date is when the acquirer obtains control (IFRS 3, para. 8). It is generally the closing date, but control can be obtained earlier, for example when a written agreement provides for another date, the acquirer considering all relevant facts and circumstances (IFRS 3, para. 9). Here control is obtained on 1 December. Trap: Using the signing (15 November), closing (20 December) or period end (31 December). Rule to remember: The acquisition date is when control is obtained, here 1 December (IFRS 3, para. 8).","es":""},"common_error":{"fr":"","en":"Using the signing, closing or reporting period end date instead of the date control is obtained.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1 December, the date on which Quasar obtains control of Pavot.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"20 December, the closing date of the transaction and of the transfer of the price.","es":""},"correct":false,"feedback":{"fr":"","en":"The closing date is generally the acquisition date, but control can be obtained earlier, for example when a written agreement provides for another date (IFRS 3, para. 9). Here the facts confirm control from 1 December. Rule to remember: Control obtained before closing moves the acquisition date earlier (IFRS 3, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"15 November, the date the acquisition agreement is signed.","es":""},"correct":false,"feedback":{"fr":"","en":"The signing on 15 November does not transfer control: the acquisition date is when the acquirer obtains control (IFRS 3, para. 8), here 1 December. Using the signing is a common dating error. Rule to remember: The signing of the agreement does not set the acquisition date (IFRS 3, para. 8).","es":""}},{"id":"D","text":{"fr":"","en":"31 December, the end of Quasar's reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The reporting period end does not set the acquisition date: it is when the acquirer obtains control (IFRS 3, para. 8), here 1 December. It merely serves as the reporting date for the accounts. Rule to remember: The reporting period end is not the acquisition date (IFRS 3, para. 8).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000026","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000026","tested_point":"QST.IFRS3.000026","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §10","IFRS 3 §11"],"exercise":{"prompt":{"fr":"","en":"At the acquisition date, how does the acquirer recognise the identifiable assets acquired and the liabilities assumed?","es":""},"explanation":{"fr":"","en":"At the acquisition date, the acquirer recognises, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree (IFRS 3, para. 10). The items recognised must meet, at that date, the definitions of an asset and a liability in the Conceptual Framework, subject to the exceptions (IFRS 3, para. 11). Trap: Merging these items into goodwill or limiting oneself to the acquiree's balance sheet. Rule to remember: Identifiable items are recognised separately from goodwill, at the acquisition date (IFRS 3, para. 10).","es":""},"common_error":{"fr":"","en":"Leaving identifiable items in goodwill, or limiting oneself to the acquiree's balance sheet.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Separately from goodwill, if the items meet the definitions of an asset and a liability in the Conceptual Framework (exceptions apart).","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Within goodwill, which gathers the difference between the price paid and the carrying amount of the acquiree in its own accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill does not absorb identifiable assets: the acquirer recognises them separately from goodwill (IFRS 3, para. 10). Goodwill is a calculated balance, not a compartment in which to place these items. Rule to remember: Identifiable assets and liabilities assumed are recognised separately from goodwill (IFRS 3, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"By taking over as they stand the items recorded in the acquiree's balance sheet, without re-examining their nature at the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"The items recognised must meet, at the acquisition date, the definitions of an asset and a liability in the Conceptual Framework (IFRS 3, para. 11); the acquiree's balance sheet does not fix that list. Items absent from that balance sheet can therefore be recognised. Rule to remember: Recognition follows the definitions at the acquisition date (IFRS 3, para. 11).","es":""}},{"id":"D","text":{"fr":"","en":"At the date the consolidated financial statements are published, when the amount of goodwill is finally determined by the acquirer, after the period end.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognition takes place at the acquisition date (IFRS 3, para. 10), not at the date the consolidated financial statements are published. Waiting for goodwill to be determined wrongly postpones the recognition of identifiable items. Rule to remember: Identifiable items are recognised at the acquisition date (IFRS 3, para. 10).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000027","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000027","tested_point":"QST.IFRS3.000027","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §10","IFRS 3 §11"],"exercise":{"prompt":{"fr":"","en":"Which statements about the recognition of a business combination at the acquisition date are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"At the acquisition date, the acquirer recognises, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest (IFRS 3, para. 10); these items meet the definitions of an asset and a liability in the Conceptual Framework, subject to the exceptions (IFRS 3, para. 11). Trap: Leaving out an intangible asset absent from the acquiree's balance sheet, or placing the non-controlling interest in goodwill. Rule to remember: All identifiable items are recognised separately from goodwill (IFRS 3, para. 10).","es":""},"common_error":{"fr":"","en":"Leaving out an intangible because it is not in the acquired balance sheet, or merging the non-controlling interest into goodwill.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An intangible asset of the acquiree that is not in its balance sheet is left out of the recognition, since the acquirer takes over what the entity had itself recorded.","es":""},"correct":false,"feedback":{"fr":"","en":"The items recognised must meet the definitions of the Conceptual Framework at the acquisition date (IFRS 3, para. 11), not appear in the acquiree's balance sheet. An identifiable intangible asset absent from that balance sheet can therefore be recognised. Rule to remember: The test is the definitions at the acquisition date, not prior recognition in the balance sheet (IFRS 3, para. 11).","es":""}},{"id":"B","text":{"fr":"","en":"The non-controlling interest is included in goodwill, without being recognised separately, because it does not represent an identifiable item.","es":""},"correct":false,"feedback":{"fr":"","en":"The non-controlling interest is among the items that the acquirer recognises separately from goodwill (IFRS 3, para. 10). Merging it into goodwill distorts the calculation of goodwill. Rule to remember: The non-controlling interest is recognised separately from goodwill (IFRS 3, para. 10).","es":""}},{"id":"C","text":{"fr":"","en":"The acquirer recognises, separately from goodwill, the identifiable assets acquired, the liabilities assumed and any non-controlling interest.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The items recognised meet, at the acquisition date, the definitions of an asset or a liability in the Conceptual Framework, subject to the exceptions.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000028","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS3.000028","tested_point":"QST.IFRS3.000028","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §10","IFRS 3 §11"],"exercise":{"prompt":{"fr":"","en":"In Klaxon SA's purchase price allocation file, the analyst did not recognise the acquiree's trademark, on the ground that it does not appear in the acquiree's balance sheet. What is the error in this reasoning?","es":""},"explanation":{"fr":"","en":"At the acquisition date, the acquirer recognises, separately from goodwill, the identifiable assets acquired (IFRS 3, para. 10) as long as they meet the definitions of an asset and a liability in the Conceptual Framework (IFRS 3, para. 11); presence in the acquiree's balance sheet is not the criterion. The analyst therefore omitted an identifiable asset. Trap: Omitting an identifiable intangible because it is not in the acquired balance sheet. Rule to remember: An acquired trademark that meets the definitions is recognised separately from goodwill (IFRS 3, para. 10).","es":""},"common_error":{"fr":"","en":"Omitting an identifiable intangible asset of the acquiree because it is not in its balance sheet.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The error is to have isolated the trademark: an asset of this kind remains within goodwill, which gathers the items not recorded in the acquired balance sheet at inception.","es":""},"correct":false,"feedback":{"fr":"","en":"An identifiable asset does not have to remain in goodwill: the acquirer recognises it separately from goodwill (IFRS 3, para. 10). Placing the trademark in goodwill repeats the inverse of the analyst's mistake. Rule to remember: An identifiable asset is recognised separately from goodwill (IFRS 3, para. 10).","es":""}},{"id":"B","text":{"fr":"","en":"Identifiable assets that meet the definitions at the acquisition date are recognised separately from goodwill, recorded or not in the acquired balance sheet.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The error is not to have waited for the end of the reporting period to assess whether the trademark meets the definition of an asset in the Conceptual Framework.","es":""},"correct":false,"feedback":{"fr":"","en":"The assessment is made at the acquisition date: the items must then meet the definitions of an asset and a liability in the Conceptual Framework (IFRS 3, para. 11). Waiting for the period end moves the date of the analysis without correcting the reasoning. Rule to remember: The definitions are assessed at the acquisition date (IFRS 3, para. 11).","es":""}},{"id":"D","text":{"fr":"","en":"The reasoning is correct: items absent from the acquiree's balance sheet are not carried into the purchase price allocation.","es":""},"correct":false,"feedback":{"fr":"","en":"The items recognised are defined by their compliance with the definitions in the Conceptual Framework at the acquisition date (IFRS 3, para. 11), not by their presence in the acquiree's balance sheet. Endorsing the analyst's reasoning would omit identifiable assets. Rule to remember: Absence from the acquiree's balance sheet does not rule out recognition (IFRS 3, para. 11).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000029","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.CLASSIFICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000029","tested_point":"QST.IFRS3.000029","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-classification"},"references":["IFRS 3 §15"],"exercise":{"prompt":{"fr":"","en":"At the acquisition date, on what basis does the acquirer classify or designate the identifiable assets acquired and the liabilities assumed, for example a financial instrument?","es":""},"explanation":{"fr":"","en":"At the acquisition date, the acquirer classifies or designates the identifiable assets acquired and the liabilities assumed according to the contractual terms, economic conditions, its operating or accounting policies and other conditions existing at that date (IFRS 3, para. 15); the standard gives as examples the classification of financial instruments under IFRS 9, the designation of hedging instruments and the separation of embedded derivatives. Trap: Keeping the acquiree's original classification. Rule to remember: Classification follows the conditions existing at the acquisition date (IFRS 3, para. 15).","es":""},"common_error":{"fr":"","en":"Keeping the classification the acquiree had when the contract was entered into.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"According to the classification the acquiree chose when the contract was entered into, which remains valid in the acquirer's accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"The original classification does not bind the acquirer: it classifies or designates the items according to the conditions existing at the acquisition date and its own policies (IFRS 3, para. 15). Keeping the acquiree's classification ignores that date. Rule to remember: Classification is made at the acquisition date, not at the inception of the contract (IFRS 3, para. 15).","es":""}},{"id":"B","text":{"fr":"","en":"According to the conditions existing when the acquiree entered into the contract, reconstructed from the information of the time.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard uses the conditions existing at the acquisition date (IFRS 3, para. 15), not those at the inception of the contract. Reconstructing the conditions of the time does not meet that requirement. Rule to remember: The relevant conditions are those at the acquisition date (IFRS 3, para. 15).","es":""}},{"id":"C","text":{"fr":"","en":"According to the contractual terms, economic conditions, its policies and other conditions existing at that date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"According to the acquiree's accounting policies, maintained in the group to avoid a change of classification.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquirer takes into account its operating or accounting policies at the acquisition date (IFRS 3, para. 15), not those of the acquiree. Keeping the latter to avoid a change contradicts the text. Rule to remember: It is the acquirer's policies that count for classification (IFRS 3, para. 15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000030","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.CLASSIFICATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000030","tested_point":"QST.IFRS3.000030","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-classification"},"references":["IFRS 3 §15"],"exercise":{"prompt":{"fr":"","en":"Prima SA acquires Dolce SA, which holds a loan that Dolce originally classified in an IFRS 9 category based on its own management practices. Case assumption: at the acquisition date, Prima's existing conditions and management practices lead, under IFRS 9, to a classification different from Dolce's. Which classification does Prima adopt in the consolidated financial statements?","es":""},"explanation":{"fr":"","en":"Prima classifies or designates the loan according to the contractual terms, economic conditions, its operating or accounting policies and other conditions existing at the acquisition date (IFRS 3, para. 15), which applies in particular to the classification of financial instruments under IFRS 9. Dolce's original classification does not bind Prima. Trap: Keeping the acquiree's classification or fixing it at another date. Rule to remember: The loan is classified at the acquisition date, according to the acquirer's conditions and policies (IFRS 3, para. 15).","es":""},"common_error":{"fr":"","en":"Carrying over the acquiree's classification instead of reclassifying at the acquisition date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The one resulting from Prima's conditions and practices at the acquisition date; Dolce's does not bind it.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Dolce's original classification, kept so that the loan does not change category at the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"Keeping Dolce's classification ignores the rule: classification is made at the acquisition date according to the conditions existing and the acquirer's policies (IFRS 3, para. 15). Avoiding a change of category is not a ground the text provides. Rule to remember: The acquiree's original classification does not bind the acquirer (IFRS 3, para. 15).","es":""}},{"id":"C","text":{"fr":"","en":"The classification existing when the loan was entered into, reconstructed by the acquirer with the conditions of that time.","es":""},"correct":false,"feedback":{"fr":"","en":"The text uses the conditions existing at the acquisition date (IFRS 3, para. 15), not those when the loan was entered into. Reconstructing the original period moves the analysis to a date the standard did not choose. Rule to remember: The relevant conditions are those at the acquisition date (IFRS 3, para. 15).","es":""}},{"id":"D","text":{"fr":"","en":"A classification freely chosen by Prima at the date the accounts are published, irrespective of the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"The reference date is the acquisition date (IFRS 3, para. 15), not the date the accounts are published. Freely choosing a classification at another date falls outside the framework set by the text. Rule to remember: Classification is assessed at the acquisition date (IFRS 3, para. 15).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000031","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.INTANGIBLES","IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000031","tested_point":"QST.IFRS3.000031","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §B32","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"Under the contractual-legal criterion, which of these intangible assets of the acquiree is identifiable?","es":""},"explanation":{"fr":"","en":"An intangible asset is identifiable if it is separable or if it arises from contractual or other legal rights; in the latter case it is so whether or not those rights are transferable or separable (IFRS 3, para. B32), whereas a non-contractual item is identifiable only if it is separable (IFRS 3, Appendix A). The acquirer recognises identifiable assets separately from goodwill (IFRS 3, para. 10). Trap: Leaving a customer contract in goodwill because it is not separable. Rule to remember: A contractual right is enough to make an intangible identifiable (IFRS 3).","es":""},"common_error":{"fr":"","en":"Including in goodwill a contractual customer relationship because it is not separable.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A non-contractual customer relationship that cannot be separated from the acquiree nor sold, leased or exchanged.","es":""},"correct":false,"feedback":{"fr":"","en":"A non-contractual customer relationship is recognised separately from goodwill only if it is separable (IFRS 3); here it is not. It therefore remains in goodwill, unlike a contract. Rule to remember: Without a contract, separability conditions identification (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"A contract with customers, which arises from contractual rights, even if it is neither transferable nor separable.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A contractual right that the acquiree is not entitled to transfer, because transferability is a condition of identification.","es":""},"correct":false,"feedback":{"fr":"","en":"An intangible asset arising from contractual or other legal rights is identifiable whether or not those rights are transferable or separable (IFRS 3). Making transferability a condition adds a criterion that the text rules out for contractual rights. Rule to remember: A contractual right is enough to make an intangible identifiable (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"An intangible asset that the acquirer does not intend to dispose of, because separability depends on the acquirer's intentions.","es":""},"correct":false,"feedback":{"fr":"","en":"Separability is assessed independently of the acquirer's intentions (IFRS 3): the existence of exchange transactions for this type of asset, even infrequent, is evidence of it. The intention to dispose or not therefore does not settle the matter. Rule to remember: The acquirer's intentions do not condition separability (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000033","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT.FAIR_VALUE_PRINCIPLE","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000033","tested_point":"QST.IFRS3.000033","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-fv"},"references":["IFRS 3 §18","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"To determine goodwill, the identifiable assets acquired and the liabilities assumed are measured at their fair value at the acquisition date, subject to exceptions.","es":""},"explanation":{"fr":"","en":"Goodwill is calculated from the net amount of the identifiable assets acquired and the liabilities assumed, measured in accordance with IFRS 3 at the acquisition date (IFRS 3, para. 32); the measurement principle is fair value at that date, subject to recognition or measurement exceptions (IFRS 3). Trap: Calculating goodwill from the acquiree's carrying amounts. Rule to remember: Goodwill is calculated on identifiable net assets measured at fair value (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Starting from the carrying amounts of the acquiree's assets instead of their fair value.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000034","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT.FAIR_VALUE_PRINCIPLE","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000034","tested_point":"QST.IFRS3.000034","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-fv"},"references":["IFRS 3 §18","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"On 30 June, Cirque SA acquires 100% of Brume SA. At that date, Brume's identifiable assets have a fair value of {fv_assets} and its liabilities assumed a fair value of {fv_liabilities}; its book equity is {carrying_equity}. Case convention: the fair values are case data; no deferred tax or contingent liability is to be taken into account. Calculate the identifiable net assets measured under the acquisition method.","es":""},"explanation":{"fr":"","en":"Method: 2,340,000 − 785,000 = 1,555,000: the identifiable net assets are the net amount of the identifiable assets acquired and the liabilities assumed, measured at fair value at the acquisition date (IFRS 3, para. 32). Book equity (1,310,000) is not the basis of this calculation. Trap: Using the book equity of the acquiree. Rule to remember: Identifiable net assets are calculated at the fair value of the assets and liabilities at the acquisition date (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Taking the acquiree's book equity as the identifiable net assets.","es":""},"format":"CALCULATION","placeholders":[{"id":"fv_assets","value":"2340000","unit":"EUR"},{"id":"fv_liabilities","value":"785000","unit":"EUR"},{"id":"carrying_equity","value":"1310000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of identifiable assets acquired","es":""},"value":"2340000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of liabilities assumed","es":""},"value":"785000","unit":"EUR"},{"label":{"fr":"","en":"Brume's book equity","es":""},"value":"1310000","unit":"EUR"}],"steps":[{"id":"IDENTIFIABLE_NET_ASSETS","label":{"fr":"","en":"Identifiable net assets","es":""},"answer":1555000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"IDENTIFIABLE_NET_ASSETS","meaning":{"fr":"","en":"Identifiable net assets","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of identifiable assets acquired","es":""},"value":2340000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of liabilities assumed","es":""},"value":785000,"unit":"EUR"}],"result":1555000,"unit":"EUR","rationale":{"fr":"","en":"Method: 2,340,000 − 785,000 = 1,555,000: the identifiable net assets are the net amount of the identifiable assets acquired and the liabilities assumed, measured at fair value at the acquisition date (IFRS 3, para. 32).","es":""}}],"rationale":{"fr":"","en":"Identifiable net assets are calculated at the fair value of the assets and liabilities at the acquisition date (IFRS 3, para. 32).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000036","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.CONTINGENT_LIABILITIES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000036","tested_point":"QST.IFRS3.000036","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-contingent"},"references":["IFRS 3 §23"],"exercise":{"prompt":{"fr":"","en":"In a business combination, the acquiree is the defendant in a lawsuit. At the acquisition date, it is a present obligation arising from past events whose fair value can be measured reliably; an outflow of resources is, however, not probable. What treatment does the acquirer apply?","es":""},"explanation":{"fr":"","en":"A contingent liability assumed is recognised at the acquisition date only if it is a present obligation arising from past events and its fair value can be measured reliably; the probability of an outflow of resources is not required, unlike under IAS 37 (IFRS 3, para. 23). Both conditions are met in the case. Trap: Applying the IAS 37 probability criterion to refuse recognition. Rule to remember: A contingent liability assumed is recognised at fair value with no probability requirement (IFRS 3, para. 23).","es":""},"common_error":{"fr":"","en":"Applying the IAS 37 probability criterion to refuse to recognise a contingent liability assumed.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises nothing, because an outflow of resources is not probable, as the standard on provisions provides for existing liabilities towards third parties.","es":""},"correct":false,"feedback":{"fr":"","en":"The probability criterion of IAS 37 does not apply here: the probability of an outflow of resources is not required, the uncertainty being reflected in the fair value (IFRS 3, para. 23). Refusing recognition on that ground wrongly transposes the IAS 37 rule. Rule to remember: A contingent liability assumed is recognised without a probability condition (IFRS 3, para. 23).","es":""}},{"id":"B","text":{"fr":"","en":"It recognises the liability when an outflow of resources becomes probable before the end of the measurement period of the combination.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not make recognition depend on a future probability: the conditions are a present obligation and a reliable measurement of fair value, assessed at the acquisition date (IFRS 3, para. 23). Waiting for probability wrongly postpones recognition. Rule to remember: Recognition is decided at the acquisition date, with no probability test (IFRS 3, para. 23).","es":""}},{"id":"C","text":{"fr":"","en":"It discloses the lawsuit in the notes without recognising it, the fair value being surrounded by too much uncertainty to be used.","es":""},"correct":false,"feedback":{"fr":"","en":"The contingent liability is recognised as soon as its fair value can be measured reliably, the uncertainty being reflected in that fair value (IFRS 3, para. 23). A mere disclosure in the notes does not replace recognition when the conditions are met. Rule to remember: Uncertainty about the outcome is reflected in the fair value, not in the absence of recognition (IFRS 3, para. 23).","es":""}},{"id":"D","text":{"fr":"","en":"It recognises a contingent liability assumed at its fair value: the probability of an outflow is not required, the uncertainty being reflected in the fair value.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000037","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.CONTINGENT_LIABILITIES"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000037","tested_point":"QST.IFRS3.000037","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-contingent"},"references":["IFRS 3 §56","IFRS 3 §23"],"exercise":{"prompt":{"fr":"","en":"In a business combination, Orme SA assumed a contingent liability (a guarantee given to customers) recognised at {initial_amount} at the acquisition date. At the reporting date, the amount determined under IAS 37 is {ias37_amount} and the cumulative income recognised since the acquisition under IFRS 15 in respect of this guarantee is {cumulative_income}. Case convention: the guarantee is not within IFRS 9. Calculate the subsequent measurement of the contingent liability.","es":""},"explanation":{"fr":"","en":"Method: 200,000 − 30,000 = 170,000; the higher of 140,000 (IAS 37) and 170,000 is 170,000. A contingent liability assumed is first recognised at the acquisition date when it is a present obligation whose fair value is measurable (IFRS 3, para. 23); afterwards, until settlement, it is measured at the higher of the two amounts (IFRS 3). Trap: Using the IAS 37 amount without comparison, or the initial amount without deducting the income. Rule to remember: Subsequent measurement is the higher of the IAS 37 amount and the initial amount less cumulative income (IFRS 3).","es":""},"common_error":{"fr":"","en":"Using the IAS 37 amount without comparing it with the initial amount net of income.","es":""},"format":"CALCULATION","placeholders":[{"id":"ias37_amount","value":"140000","unit":"EUR"},{"id":"initial_amount","value":"200000","unit":"EUR"},{"id":"cumulative_income","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Amount under IAS 37","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Initial amount recognised","es":""},"value":"200000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative income recognised under IFRS 15","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"SUBSEQUENT_AMOUNT","label":{"fr":"","en":"Subsequent measurement","es":""},"answer":170000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"SUBSEQUENT_AMOUNT","meaning":{"fr":"","en":"Subsequent measurement","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Initial amount recognised","es":""},"value":200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Cumulative income recognised under IFRS 15","es":""},"value":30000,"unit":"EUR"}],"result":170000,"unit":"EUR"}],"rationale":{"fr":"","en":"Subsequent measurement is the higher of the IAS 37 amount and the initial amount less cumulative income (IFRS 3).","es":""},"references":["REF.IFRS3.23"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000039","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.CONCEPTUAL_FRAMEWORK_LIABILITIES"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000039","tested_point":"QST.IFRS3.000039","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-cf"},"references":["IFRS 3 §21A"],"exercise":{"prompt":{"fr":"","en":"Durance SA acquires Tarn SA on 1 June. Tarn is subject to an annual levy that falls within IFRIC 21. Case assumption: under IFRIC 21, the obligating event for the levy is Tarn's presence on the market on 31 December; it has not occurred at the acquisition date. How does Durance treat the levy in the purchase price allocation?","es":""},"explanation":{"fr":"","en":"For liabilities and contingent liabilities within IAS 37 or IFRIC 21, the acquirer applies those texts, not the Conceptual Framework, to determine whether an obligation exists at the acquisition date (IFRS 3, para. 21A). Under the case assumption, the obligating event for the levy has not occurred at the acquisition date: no liability is recognised at that date in this case (conclusion drawn from that assumption). Trap: Recognising a levy liability because the obligation will arise later in the reporting period. Rule to remember: The levy obligation is assessed under IFRIC 21 at the acquisition date (IFRS 3, para. 21A).","es":""},"common_error":{"fr":"","en":"Recognising a levy liability at the acquisition date because the obligation will arise later in the reporting period.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It applies the Conceptual Framework, which allows the obligation to be anticipated since the obligating event of the levy will occur at the end of the reporting year.","es":""},"correct":false,"feedback":{"fr":"","en":"For liabilities within IAS 37 or IFRIC 21, the acquirer applies those texts, not the Conceptual Framework, to determine whether an obligation exists at the acquisition date (IFRS 3, para. 21A). Anticipating the obligation through the Conceptual Framework is precisely what the exception rules out. Rule to remember: For a levy within IFRIC 21, the obligation is assessed under IFRIC 21, not under the Conceptual Framework (IFRS 3, para. 21A).","es":""}},{"id":"B","text":{"fr":"","en":"It recognises the levy liability for the fraction of the year elapsed at the acquisition date, pro rata by months.","es":""},"correct":false,"feedback":{"fr":"","en":"Whether an obligation exists at the acquisition date is determined under IFRIC 21 (IFRS 3, para. 21A); according to the case assumption, the obligating event has not occurred at that date. A pro rata liability amounts to recognising an obligation that this text does not yet find. Rule to remember: The existence of a levy obligation at the acquisition date is assessed under IFRIC 21 (IFRS 3, para. 21A).","es":""}},{"id":"C","text":{"fr":"","en":"It applies IFRIC 21 to determine whether an obligation exists at the acquisition date, in light of the obligating event in the case.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It recognises the levy liability for the whole year, because Tarn will in fact have to pay it during the reporting period.","es":""},"correct":false,"feedback":{"fr":"","en":"The future payment of the levy does not by itself create the obligation: the acquirer applies IFRIC 21 to determine whether one exists at the acquisition date (IFRS 3, para. 21A). Recognising the whole year contradicts the case assumption about the obligating event. Rule to remember: The levy obligation is assessed at the acquisition date under IFRIC 21 (IFRS 3, para. 21A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000040","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INCOME_TAXES","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000040","tested_point":"QST.IFRS3.000040","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-taxes"},"references":["IFRS 3 §24","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"On acquiring Aubrac SA, a building is recognised at a fair value of {fv_building}; its tax base remains {tax_base}. Case convention: the applicable tax rate is {tax_rate}, and the difference is a taxable temporary difference, fully recognised. Calculate the deferred tax liability recognised in the business combination.","es":""},"explanation":{"fr":"","en":"Method: 1,650,000 − 1,250,000 = 400,000 of taxable temporary difference; 400,000 × 25% = 100,000. The acquirer recognises the deferred tax arising from the assets acquired and liabilities assumed in accordance with IAS 12, which changes goodwill or the gain on a bargain purchase (IFRS 3); this liability reduces the identifiable net assets used in the goodwill calculation (IFRS 3, para. 32). Trap: Calculating tax on the whole fair value (1,650,000) instead of the difference. Rule to remember: Deferred tax is calculated on the difference between fair value and tax base, and changes goodwill (IFRS 3).","es":""},"common_error":{"fr":"","en":"Applying the tax rate to the whole fair value rather than to the difference from the tax base.","es":""},"format":"CALCULATION","placeholders":[{"id":"fv_building","value":"1650000","unit":"EUR"},{"id":"tax_base","value":"1250000","unit":"EUR"},{"id":"tax_rate","value":"25","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Fair value of the building","es":""},"value":"1650000","unit":"EUR"},{"label":{"fr":"","en":"Tax base of the building","es":""},"value":"1250000","unit":"EUR"},{"label":{"fr":"","en":"Applicable tax rate","es":""},"value":"25","unit":"PERCENT"}],"steps":[{"id":"DEFERRED_TAX_LIABILITY","label":{"fr":"","en":"Deferred tax liability","es":""},"answer":100000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DEFERRED_TAX_LIABILITY","meaning":{"fr":"","en":"Deferred tax liability","es":""},"expression":"(a - b) * c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the building","es":""},"value":1650000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tax base of the building","es":""},"value":1250000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Applicable tax rate","es":""},"value":25,"unit":"PERCENT"}],"result":100000,"unit":"EUR"}],"rationale":{"fr":"","en":"Deferred tax is calculated on the difference between fair value and tax base, and changes goodwill (IFRS 3).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000042","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INCOME_TAXES","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS3.000042","tested_point":"QST.IFRS3.000042","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000006","section_id":"rule-taxes"},"references":["IFRS 3 §24","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"In a purchase price allocation file, the analyst at Lys SA notes a fair value uplift of 400,000 on an acquired building whose tax base is lower, but recognises no deferred tax and calculates goodwill on that basis. What is the error?","es":""},"explanation":{"fr":"","en":"The acquirer recognises and measures the deferred tax assets and liabilities arising from the assets acquired and the liabilities assumed in accordance with IAS 12, and this recognition changes the amount of goodwill or of the gain on a bargain purchase (IFRS 3). Because the deferred tax liability lowers identifiable net assets, the file's goodwill is understated (IFRS 3, para. 32). Trap: Forgetting to add the deferred tax to the liabilities assumed. Rule to remember: Deferred tax on a fair value uplift is recognised and increases goodwill (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Forgetting to add the deferred tax to the liabilities assumed, which understates goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Deferred tax must be recognised as an expense of the period and not in goodwill, which reflects the fair values.","es":""},"correct":false,"feedback":{"fr":"","en":"Recognising deferred tax in the business combination changes the amount of goodwill or of the gain on a bargain purchase (IFRS 3): it is not taken to expense for the period. This option reverses the allocation. Rule to remember: Deferred tax in a business combination affects goodwill, not profit or loss (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"Goodwill must be reduced by the deferred tax liability, because that liability lowers the price actually paid to the former owner.","es":""},"correct":false,"feedback":{"fr":"","en":"The deferred tax liability reduces identifiable net assets, which increases goodwill (IFRS 3, para. 32); it does not reduce it. The price paid is not affected by this liability. Rule to remember: An additional deferred tax liability increases goodwill (IFRS 3, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"The reasoning is correct: the IFRS 3 exception exempts the acquirer from recognising deferred tax on fair value adjustments.","es":""},"correct":false,"feedback":{"fr":"","en":"The IFRS 3 exception on taxes refers to IAS 12 for recognising the deferred tax of the assets acquired and liabilities assumed (IFRS 3): it does not exempt from recognising it. Endorsing the reasoning would understate goodwill. Rule to remember: The tax exception requires IAS 12 to be applied to the adjustments (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"Deferred tax on the difference has not been recognised: it reduces identifiable net assets and therefore increases goodwill.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000044","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INDEMNIFICATION_ASSETS"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000044","tested_point":"QST.IFRS3.000044","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-indemnification"},"references":["IFRS 3 §27","IFRS 3 §57"],"exercise":{"prompt":{"fr":"","en":"On acquiring Sorgue SA, the former owners contractually agree to indemnify the acquirer for a tax dispute: the liability recognised is {indemnified_liability} and the indemnity is contractually capped at {contractual_cap}. Case convention: recoverability of the indemnity is taken for granted. Calculate the indemnification asset.","es":""},"explanation":{"fr":"","en":"Method: the lower of 320,000 and 250,000 is 250,000. The indemnification asset is measured on the same basis as the indemnified item (IFRS 3, para. 27), taking into account the contractual limit on the indemnified amount, as the indemnified item (a tax liability) falls under an exception (IFRS 3); the same limit applies at each reporting date (IFRS 3, para. 57): the indemnity cannot exceed 250,000. Trap: Measuring the asset at 320,000 despite the cap. Rule to remember: The indemnification asset follows the basis of the indemnified item, within the contractual limit on the indemnified amount (IFRS 3, paras. 27 and 57).","es":""},"common_error":{"fr":"","en":"Measuring the indemnification asset at the amount of the indemnified liability without regard to the cap.","es":""},"format":"CALCULATION","placeholders":[{"id":"indemnified_liability","value":"320000","unit":"EUR"},{"id":"contractual_cap","value":"250000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Indemnified liability recognised","es":""},"value":"320000","unit":"EUR"},{"label":{"fr":"","en":"Contractual cap on the indemnity","es":""},"value":"250000","unit":"EUR"}],"steps":[{"id":"INDEMNIFICATION_ASSET","label":{"fr":"","en":"Indemnification asset","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000045","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INDEMNIFICATION_ASSETS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000045","tested_point":"QST.IFRS3.000045","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-indemnification"},"references":["IFRS 3 §27"],"exercise":{"prompt":{"fr":"","en":"The former owners of Arve SA contractually indemnify the acquirer in respect of an uncertainty about a particular liability of the acquiree. How does the acquirer treat this indemnity at the acquisition date?","es":""},"explanation":{"fr":"","en":"When the former owners contractually indemnify the acquirer in respect of an uncertainty about a particular asset or liability, the acquirer recognises an indemnification asset measured on the same basis as the indemnified item (IFRS 3, para. 27). The acquiree's liability and the indemnification asset are therefore recognised together at the acquisition date. Trap: Deferring the asset until cash is received or netting it against the liability. Rule to remember: An indemnification asset is recognised on the same basis as the indemnified item (IFRS 3, para. 27).","es":""},"common_error":{"fr":"","en":"Waiting for cash receipt or netting the indemnity against the liability instead of recognising an indemnification asset.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises an indemnification asset measured on the same basis as the indemnified liability.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It recognises nothing before cash is received, the indemnity being at this stage a mere contingent right.","es":""},"correct":false,"feedback":{"fr":"","en":"When the former owners contractually indemnify the acquirer, it recognises an indemnification asset at the acquisition date (IFRS 3, para. 27). Waiting for the cash receipt wrongly delays that recognition. Rule to remember: The indemnification asset is recognised at the acquisition date (IFRS 3, para. 27).","es":""}},{"id":"C","text":{"fr":"","en":"It recognises the asset at the fair value of the indemnity, unrelated to the measurement basis of the indemnified liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement basis of the indemnification asset is that of the indemnified item (IFRS 3, para. 27), not a fair value specific to the indemnity. The two measurements thus follow the same logic. Rule to remember: The indemnification asset and the indemnified item are measured on the same basis (IFRS 3, para. 27).","es":""}},{"id":"D","text":{"fr":"","en":"It directly reduces the indemnified liability by the amount of the indemnity, without recognising a separate asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for the recognition of an indemnification asset (IFRS 3, para. 27): offsetting the liability directly amounts to not showing that asset. Rule to remember: The indemnity gives rise to a separate indemnification asset (IFRS 3, para. 27).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000046","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.LEASES","IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000046","tested_point":"QST.IFRS3.000046","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §28B","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"Loing SA, the acquiree, is the lessee under a lease that is neither short-term nor for a low-value asset. The remaining lease payments at the acquisition date are {payment_1} in one year and {payment_2} in two years. Case convention: the discount rate is {discount_rate} (case data) and the contract is treated as a new contract at the acquisition date. Calculate the lease liability at the acquisition date.","es":""},"explanation":{"fr":"","en":"Method: 55,000 ÷ 1.10 = 50,000; 121,000 ÷ 1.10² = 100,000; total 150,000. The lease liability is measured at the present value of the remaining lease payments, as if the contract were a new contract at the acquisition date (IFRS 3); it is a liability assumed, recognised separately from goodwill (IFRS 3, para. 10). The discount rate is case data, not a rule. Trap: Adding the undiscounted payments (176,000). Rule to remember: The lease liability is the present value of the remaining payments at the acquisition date (IFRS 3).","es":""},"common_error":{"fr":"","en":"Adding the remaining payments without discounting them.","es":""},"format":"CALCULATION","placeholders":[{"id":"payment_1","value":"55000","unit":"EUR"},{"id":"payment_2","value":"121000","unit":"EUR"},{"id":"discount_rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Payment in one year","es":""},"value":"55000","unit":"EUR"},{"label":{"fr":"","en":"Payment in two years","es":""},"value":"121000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"LEASE_LIABILITY","label":{"fr":"","en":"Lease liability","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"LEASE_LIABILITY","meaning":{"fr":"","en":"Lease liability","es":""},"expression":"(a / (1 + b)) + (c / (1 + b)^2)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Payment in one year","es":""},"value":55000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":10,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Payment in two years","es":""},"value":121000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"The lease liability is the present value of the remaining payments at the acquisition date (IFRS 3).","es":""},"references":["REF.IFRS3.10"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000047","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.REACQUIRED_RIGHTS"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000047","tested_point":"QST.IFRS3.000047","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-reacquired"},"references":["IFRS 3 §29","IFRS 3 §55"],"exercise":{"prompt":{"fr":"","en":"On acquiring Brie SA, a reacquired right (a technology licence that the acquirer had granted to Brie) is recognised as an intangible asset for 480,000. It is amortised over the remaining contractual term of the contract, 4 years, i.e. an annual charge of {annual_charge}. Case convention: straight-line amortisation; under IFRS 3, probable renewals of the contract do not extend this term. Calculate the amortisation for the first {months} months after the acquisition date.","es":""},"explanation":{"fr":"","en":"Method: 120,000 × 9 ÷ 12 = 90,000. A reacquired right recognised as an intangible asset is measured on the basis of the remaining contractual term of the contract that granted it, whether or not market participants consider possible renewals (IFRS 3, para. 29); it is amortised over the remaining contractual period (IFRS 3, para. 55). Trap: Lengthening the amortisation period to include probable renewals. Rule to remember: The reacquired right is amortised over the remaining contractual term (IFRS 3, para. 55).","es":""},"common_error":{"fr":"","en":"Including probable renewals in the amortisation period of a reacquired right.","es":""},"format":"CALCULATION","placeholders":[{"id":"annual_charge","value":"120000","unit":"EUR"},{"id":"months","value":"9","unit":"MONTHS"}],"data":[{"label":{"fr":"","en":"Annual amortisation charge","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Number of months elapsed","es":""},"value":"9","unit":"MONTHS"}],"steps":[{"id":"PERIOD_CHARGE","label":{"fr":"","en":"Charge for the period","es":""},"answer":90000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PERIOD_CHARGE","meaning":{"fr":"","en":"Charge for the period","es":""},"expression":"a * b / 12","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual amortisation charge","es":""},"value":120000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Number of months elapsed","es":""},"value":9,"unit":"MONTHS"}],"result":90000,"unit":"EUR"}],"rationale":{"fr":"","en":"The reacquired right is amortised over the remaining contractual term (IFRS 3, para. 55).","es":""},"references":["REF.IFRS3.29","REF.IFRS3.55"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000048","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.SHARE_BASED_PAYMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000048","tested_point":"QST.IFRS3.000048","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000007","section_id":"rule-sbp"},"references":["IFRS 3 §B56","IFRS 3 §30"],"exercise":{"prompt":{"fr":"","en":"On acquiring Cher SA, the acquirer replaces the share awards of Cher's employees with awards in its own name, whose market-based measure at the acquisition date is {award_value}. Case convention: the services rendered before the combination represent {pre_service_share} of the total vesting period (case data). Calculate the portion of the replacement award included in the consideration transferred.","es":""},"explanation":{"fr":"","en":"Method: 600,000 × 40% = 240,000. Part of the market-based measure of the replacement award is included in the consideration transferred (services rendered before the combination), and the rest is post-combination remuneration expense, spread over the remaining vesting period, i.e. 360,000 here (IFRS 3, para. B56). These instruments are measured under IFRS 2 at the acquisition date (IFRS 3, para. 30). Trap: Allocating the whole replacement award to the consideration transferred. Rule to remember: The portion for services already rendered enters the consideration transferred (IFRS 3, para. B56).","es":""},"common_error":{"fr":"","en":"Allocating the whole replacement award to the consideration transferred.","es":""},"format":"CALCULATION","placeholders":[{"id":"award_value","value":"600000","unit":"EUR"},{"id":"pre_service_share","value":"40","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Market-based measure of the replacement award","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Share of services rendered before the combination","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"PRE_COMBINATION_PORTION","label":{"fr":"","en":"Portion included in the consideration transferred","es":""},"answer":240000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"PRE_COMBINATION_PORTION","meaning":{"fr":"","en":"Portion included in the consideration transferred","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Market-based measure of the replacement award","es":""},"value":600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Share of services rendered before the combination","es":""},"value":40,"unit":"PERCENT"}],"result":240000,"unit":"EUR"}],"rationale":{"fr":"","en":"The portion for services already rendered enters the consideration transferred (IFRS 3, para. B56).","es":""},"references":["REF.IFRS3.B56","REF.IFRS3.30"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000049","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.HELD_FOR_SALE","IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000049","tested_point":"QST.IFRS3.000049","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §31","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"At the acquisition date of Doubs SA, a group of non-current assets is classified as held for sale. Its fair value is {fair_value} and the costs to sell are {costs_to_sell}. Calculate its measurement in the business combination.","es":""},"explanation":{"fr":"","en":"Method: 840,000 − 35,000 = 805,000: non-current assets (or disposal groups) classified as held for sale at the acquisition date are measured at fair value less costs to sell (IFRS 3, in line with IFRS 5). This group is among the identifiable assets recognised separately from goodwill (IFRS 3, para. 10). Trap: Using fair value without deducting costs to sell. Rule to remember: A group held for sale is measured at fair value less costs to sell (IFRS 3).","es":""},"common_error":{"fr":"","en":"Measuring an asset held for sale at fair value without deducting costs to sell.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"840000","unit":"EUR"},{"id":"costs_to_sell","value":"35000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of the group of assets","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Costs to sell","es":""},"value":"35000","unit":"EUR"}],"steps":[{"id":"HELD_FOR_SALE_AMOUNT","label":{"fr":"","en":"Measurement of the group held for sale","es":""},"answer":805000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"HELD_FOR_SALE_AMOUNT","meaning":{"fr":"","en":"Measurement of the group held for sale","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the group of assets","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Costs to sell","es":""},"value":35000,"unit":"EUR"}],"result":805000,"unit":"EUR","rationale":{"fr":"","en":"Method: 840,000 − 35,000 = 805,000: non-current assets (or disposal groups) classified as held for sale at the acquisition date are measured at fair value less costs to sell (IFRS 3, in line with IFRS 5).","es":""}}],"rationale":{"fr":"","en":"A group held for sale is measured at fair value less costs to sell (IFRS 3).","es":""},"references":["REF.IFRS3.10"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000050","standard_id":"IFRS3","concept_ids":["IFRS3.EXCEPTIONS.INSURANCE_CONTRACTS","IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000050","tested_point":"QST.IFRS3.000050","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"Fénix SA acquires an insurer in a business combination. How does it measure, at the acquisition date, a group of contracts within IFRS 17 assumed in this combination?","es":""},"explanation":{"fr":"","en":"A group of contracts within IFRS 17 acquired in a business combination, and insurance acquisition cash flow assets, are measured under IFRS 17 at the acquisition date; whether a contract is an insurance contract is assessed on the conditions at that date, the former exception linked to IFRS 4 having been removed (IFRS 3). These contracts remain identifiable items recognised separately from goodwill (IFRS 3, para. 10). Trap: Measuring the group of contracts at general fair value. Rule to remember: Acquired insurance contracts within IFRS 17 are measured under IFRS 17 at the acquisition date (IFRS 3).","es":""},"common_error":{"fr":"","en":"Measuring at general fair value a group of acquired insurance contracts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the fair value of its assets and liabilities, like the other items assumed under the general measurement principle of IFRS 3.","es":""},"correct":false,"feedback":{"fr":"","en":"A group of insurance contracts within IFRS 17 acquired in a business combination is measured under IFRS 17 at the acquisition date, as an exception to the general principle (IFRS 3). Treating it at general fair value repeats the error of ignoring the exception. Rule to remember: Contracts within IFRS 17 are measured under IFRS 17, not at general fair value (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"Under IFRS 17 at the acquisition date, whether a contract is an insurance contract being assessed on the conditions existing at that date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Under IFRS 4, whose former exception to the classification rule remains applicable to acquired insurance contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"The former exception linked to IFRS 4 has been removed (IFRS 3): acquired insurance contracts follow IFRS 17. Invoking IFRS 4 relies on a text that no longer applies here. Rule to remember: The IFRS 4-related exception no longer exists for acquired insurance contracts (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"At the carrying amount that the group of contracts had at the acquired insurer, without remeasurement at the acquisition date or application of another standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The contracts assumed are measured at the acquisition date under IFRS 17 (IFRS 3), not at the acquiree's carrying amount: a business combination requires identifiable items to be remeasured at that date. Rule to remember: Acquired insurance contracts are measured at the acquisition date (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000051","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.MEASUREMENT_CHOICE","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000051","tested_point":"QST.IFRS3.000051","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-choice"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"The choice between fair value and the proportionate share of identifiable net assets to measure the non-controlling interest is a single policy, applying to all of the entity's business combinations.","es":""},"explanation":{"fr":"","en":"For each business combination, the acquirer measures the components of the non-controlling interest that are present ownership instruments entitling their holders to a proportionate share of net assets on liquidation either at fair value or at their proportionate share of the acquiree's identifiable net assets; the choice is made combination by combination, other components being at fair value unless another basis is required (IFRS 3, para. 19). A method chosen for a case is never imposed by the standard. The non-controlling interest thus measured enters the calculation of goodwill (IFRS 3, para. 32). Trap: Treating the choice as a single policy for all business combinations. Rule to remember: The choice of method for the non-controlling interest is made transaction by transaction (IFRS 3).","es":""},"common_error":{"fr":"","en":"Treating the choice of method as a single policy valid for all business combinations.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000052","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.MEASUREMENT_CHOICE","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000052","tested_point":"QST.IFRS3.000052","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-choice"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"On 1 April, Seine SA acquires 70% of Marne SA. Marne's identifiable net assets, measured under IFRS 3, are {identifiable_net_assets}. The other shareholders hold {minority_percent} of the capital. Case convention: Seine chooses, for this business combination, to measure the non-controlling interest at its proportionate share of identifiable net assets. Calculate the non-controlling interest at the acquisition date.","es":""},"explanation":{"fr":"","en":"Method: 2,400,000 × 30% = 720,000. Under the proportionate share method, the non-controlling interest equals its proportionate share of the acquiree's identifiable net assets (IFRS 3); this choice is the case's choice for this business combination, not an imposed rule. The non-controlling interest thus measured enters the calculation of goodwill (IFRS 3, para. 32). Trap: Applying 70% instead of the 30% held by the minority shareholders. Rule to remember: At proportionate share, the non-controlling interest is the minority percentage applied to identifiable net assets (IFRS 3).","es":""},"common_error":{"fr":"","en":"Applying the acquirer's percentage rather than the minority's.","es":""},"format":"CALCULATION","placeholders":[{"id":"identifiable_net_assets","value":"2400000","unit":"EUR"},{"id":"minority_percent","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Marne's identifiable net assets","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held by the other shareholders","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"NCI_PROPORTIONATE","label":{"fr":"","en":"Non-controlling interest at proportionate share","es":""},"answer":720000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NCI_PROPORTIONATE","meaning":{"fr":"","en":"Non-controlling interest at proportionate share","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Marne's identifiable net assets","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Percentage held by the other shareholders","es":""},"value":30,"unit":"PERCENT"}],"result":720000,"unit":"EUR"}],"rationale":{"fr":"","en":"At proportionate share, the non-controlling interest is the minority percentage applied to identifiable net assets (IFRS 3).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000054","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.COMPONENTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000054","tested_point":"QST.IFRS3.000054","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-components"},"references":["IFRS 3 §19"],"exercise":{"prompt":{"fr":"","en":"The non-controlling interest in Garrigue SA comprises ordinary shares, which entitle holders to a proportionate share of net assets on liquidation, and share options, which do not. The acquirer elects the proportionate share for the business combination. How does it measure each component?","es":""},"explanation":{"fr":"","en":"For each business combination, the acquirer chooses between fair value and the proportionate share of identifiable net assets, but that choice applies only to the components that are present ownership instruments entitling holders to a proportionate share of net assets on liquidation; the other components are measured at fair value, unless another basis is required by IFRSs (IFRS 3, para. 19). Trap: Measuring at the proportionate share options that carry no right to net assets on liquidation. Rule to remember: The proportionate share applies to components that carry a right to net assets on liquidation (IFRS 3, para. 19).","es":""},"common_error":{"fr":"","en":"Measuring at the proportionate share preference shares or options that do not entitle holders to a share of net assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Each component is measured at the proportionate share of identifiable net assets, whatever its nature.","es":""},"correct":false,"feedback":{"fr":"","en":"The proportionate share applies only to components that are present ownership instruments entitling holders to a proportionate share of net assets on liquidation (IFRS 3). Extending it to the options, which do not, measures them on an unsuitable basis. Rule to remember: The proportionate share does not apply to components without a right to net assets on liquidation (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"The options are measured at the proportionate share and the ordinary shares at fair value, because the latter are more liquid on the market.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is not liquidity: the proportionate share applies to present ownership instruments entitling holders to a proportionate share of net assets on liquidation, here the ordinary shares (IFRS 3). Reversing the two measurements contradicts that criterion. Rule to remember: The right to net assets on liquidation, not liquidity, underlies the proportionate share (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"The proportionate share elected for the whole extends to the options for simplicity, as long as the difference from their fair value remains small.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice between fair value and proportionate share concerns the non-controlling interest (IFRS 3), but the proportionate share applies only to some components (IFRS 3). A threshold for the difference or a simplification is not a criterion. Rule to remember: A small difference in value does not justify extending the proportionate share to the options (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"The proportionate share applies to the ordinary shares; the options are measured at fair value, unless another basis is required by IFRSs.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000055","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.GOODWILL_EFFECT"],"dimension":"CALCULATION","context":"V1_VG.IFRS3.000005","tested_point":"VG.IFRS3.000005","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-goodwill-effect"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Vienne SA acquires 80% of Cèdre SA for consideration transferred of {consideration}. Cèdre's identifiable net assets, measured under IFRS 3, are {net_assets}. The fair value of the {nci_percent} non-controlling interest is {nci_fair_value}. Calculate the goodwill attributable to the non-controlling interest, i.e. the difference between goodwill calculated with that interest at fair value and goodwill calculated with that interest at its proportionate share.","es":""},"explanation":{"fr":"","en":"Method: proportionate share: 2,000,000 × 20% = 400,000, hence goodwill of 1,800,000 + 400,000 − 2,000,000 = 200,000; fair value: 1,800,000 + 430,000 − 2,000,000 = 230,000; difference: 230,000 − 200,000 = 30,000. Goodwill adds the non-controlling interest to the consideration, before deducting identifiable net assets (IFRS 3, para. 32); the choice between the two methods is made transaction by transaction (IFRS 3). Trap: Leaving out the non-controlling interest in one of the two calculations. Rule to remember: Goodwill attributable to the non-controlling interest is the difference between the two methods (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Calculating partial goodwill while forgetting the non-controlling interest measured at proportionate share.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration","value":"1800000","unit":"EUR"},{"id":"net_assets","value":"2000000","unit":"EUR"},{"id":"nci_fair_value","value":"430000","unit":"EUR"},{"id":"nci_percent","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Consideration transferred","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Cèdre's identifiable net assets","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the non-controlling interest","es":""},"value":"430000","unit":"EUR"},{"label":{"fr":"","en":"Non-controlling percentage","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"GOODWILL_ATTRIBUTABLE_TO_NCI","label":{"fr":"","en":"Goodwill attributable to the non-controlling interest","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL_ATTRIBUTABLE_TO_NCI","meaning":{"fr":"","en":"Goodwill attributable to the non-controlling interest","es":""},"expression":"(a + b - c) - (a + (c * d) - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":1800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the non-controlling interest","es":""},"value":430000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Cèdre's identifiable net assets","es":""},"value":2000000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Non-controlling percentage","es":""},"value":20,"unit":"PERCENT"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill attributable to the non-controlling interest is the difference between the two methods (IFRS 3, para. 32).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000056","standard_id":"IFRS3","concept_ids":["IFRS3.NCI.GOODWILL_EFFECT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS3.000056","tested_point":"QST.IFRS3.000056","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-goodwill-effect"},"references":["IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"For a business combination in which the non-controlling interest is measured at the proportionate share, the analyst at Hêtre SA calculates goodwill as: consideration transferred less identifiable net assets. What is the error in this calculation?","es":""},"explanation":{"fr":"","en":"Goodwill equals the consideration transferred, plus the non-controlling interest, plus the acquisition-date fair value of the previously held interest, less the net amount of the identifiable assets acquired and liabilities assumed (IFRS 3, para. 32). At the proportionate share, the non-controlling interest equals its share of identifiable net assets (IFRS 3): leaving it out distorts goodwill. Trap: Calculating partial goodwill while forgetting the non-controlling interest. Rule to remember: Goodwill includes the non-controlling interest, whatever its measurement method (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Calculating partial goodwill while forgetting the non-controlling interest measured at proportionate share.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Identifiable net assets must not be deducted: goodwill is the consideration transferred plus the non-controlling interest.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is indeed calculated by deducting the net amount of the identifiable assets acquired and liabilities assumed (IFRS 3, para. 32). Removing that deduction no longer measures goodwill. Rule to remember: Goodwill is calculated after deducting identifiable net assets (IFRS 3, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"The non-controlling interest, measured here at its proportionate share of identifiable net assets, has not been added to the consideration transferred.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The non-controlling interest should have been added at fair value, the proportionate share being excluded from the goodwill calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquirer may choose the proportionate share of identifiable net assets as well as fair value (IFRS 3); in both cases, the non-controlling interest enters the goodwill calculation (IFRS 3, para. 32). Excluding the proportionate share is not provided for. Rule to remember: The proportionate share is an accepted way of measuring the non-controlling interest (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"The calculation is correct: under the proportionate share method, the non-controlling interest does not enter the goodwill calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"Whichever method is chosen, the non-controlling interest is one of the terms of goodwill (IFRS 3, para. 32). Endorsing the calculation would reproduce the analyst's omission. Rule to remember: The non-controlling interest enters goodwill under both methods (IFRS 3, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000058","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.MEASUREMENT","IFRS3.CONSIDERATION.ACQUISITION_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000058","tested_point":"QST.IFRS3.000058","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-formula"},"references":["IFRS 3 §32","IFRS 3 §53"],"exercise":{"prompt":{"fr":"","en":"Which formula gives the goodwill of a business combination?","es":""},"explanation":{"fr":"","en":"Goodwill equals the consideration transferred, plus the non-controlling interest, plus the acquisition-date fair value of the previously held interest, less the net amount of the identifiable assets acquired and liabilities assumed, measured under IFRS 3 (IFRS 3, para. 32). Acquisition-related costs are excluded (IFRS 3, para. 53). Trap: Deducting the carrying amount of the acquiree's equity instead of identifiable net assets. Rule to remember: Goodwill is calculated on identifiable net assets measured at the acquisition date (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Deducting from the consideration the carrying amount of the acquiree's equity instead of identifiable net assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Consideration transferred less the carrying amount of the acquiree's equity in its own accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is calculated against identifiable net assets measured under IFRS 3, not against the carrying amount of the acquiree's equity (IFRS 3, para. 32). Starting from carrying amounts ignores fair values and unrecognised items. Rule to remember: Goodwill is measured against identifiable net assets measured at the acquisition date (IFRS 3, para. 32).","es":""}},{"id":"B","text":{"fr":"","en":"Net amount of the identifiable assets acquired and liabilities assumed less the consideration transferred.","es":""},"correct":false,"feedback":{"fr":"","en":"The direction of the difference is reversed: goodwill is the sum of the consideration transferred, the non-controlling interest and the previously held interest, less the net amount of the identifiable assets (IFRS 3, para. 32). The opposite excess is a bargain purchase gain. Rule to remember: Goodwill = consideration and interests less identifiable net assets (IFRS 3, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"Consideration transferred plus non-controlling interest plus fair value of the previously held interest, less identifiable net assets.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Consideration transferred plus acquisition-related costs plus non-controlling interest plus fair value of the previously held interest, less identifiable net assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Acquisition-related costs are not part of the consideration transferred: the acquirer recognises them as expenses (IFRS 3, para. 53). Adding them to the calculation inflates goodwill. Rule to remember: Acquisition-related costs do not enter goodwill (IFRS 3, para. 53).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000059","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000059","tested_point":"QST.IFRS3.000059","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-formula"},"references":["IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Allier SA acquires 80% of Doux SA for consideration transferred of {consideration}. Case convention: the non-controlling interest is measured at {nci_amount} and Doux's identifiable net assets, measured under IFRS 3, are {net_assets}; there is no previously held interest. Calculate goodwill.","es":""},"explanation":{"fr":"","en":"Method: 2,700,000 + 500,000 − 2,500,000 = 700,000. Goodwill is the consideration transferred plus the non-controlling interest, less the net amount of the identifiable assets acquired and liabilities assumed measured under IFRS 3 (IFRS 3, para. 32). Trap: Forgetting to add the non-controlling interest (result of 200,000). Rule to remember: Goodwill includes the non-controlling interest in its calculation (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Calculating goodwill without the non-controlling interest.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration","value":"2700000","unit":"EUR"},{"id":"nci_amount","value":"500000","unit":"EUR"},{"id":"net_assets","value":"2500000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Consideration transferred","es":""},"value":"2700000","unit":"EUR"},{"label":{"fr":"","en":"Non-controlling interest","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Doux's identifiable net assets","es":""},"value":"2500000","unit":"EUR"}],"steps":[{"id":"GOODWILL","label":{"fr":"","en":"Goodwill","es":""},"answer":700000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a + b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":2700000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Non-controlling interest","es":""},"value":500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Doux's identifiable net assets","es":""},"value":2500000,"unit":"EUR"}],"result":700000,"unit":"EUR"}],"rationale":{"fr":"","en":"Goodwill includes the non-controlling interest in its calculation (IFRS 3, para. 32).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000061","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.PURCHASE_PRICE_ALLOCATION"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000061","tested_point":"QST.IFRS3.000061","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-ppa"},"references":["IFRS 3 §32","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"Orne SA acquires 100% of Sèvre SA for 5,000,000. Sèvre has assets with a carrying amount of 4,000,000, measured at a fair value of 4,900,000, and liabilities assumed of 1,500,000 (carrying amount and fair value identical). Case convention: No deferred tax or particular item is to be considered. What is goodwill?","es":""},"explanation":{"fr":"","en":"Goodwill is calculated from the net amount of the identifiable assets acquired and liabilities assumed, measured under IFRS 3 at the acquisition date (IFRS 3, para. 32), and recognised separately from goodwill (IFRS 3, para. 10). Here: assets at fair value 4,900,000 − liabilities 1,500,000 = 3,400,000; goodwill = 5,000,000 − 3,400,000 = 1,600,000. Trap: Calculating goodwill from the carrying amount of the assets. Rule to remember: Goodwill is the price less identifiable net assets at fair value (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Omitting an exception or calculating goodwill from the carrying amount of the assets.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1,600,000, i.e. 5,000,000 less identifiable net assets at fair value of 3,400,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"2,500,000, i.e. 5,000,000 less Sèvre's net book value calculated with carrying amounts.","es":""},"correct":false,"feedback":{"fr":"","en":"Net book value (4,000,000 − 1,500,000 = 2,500,000) is not the basis: identifiable assets are measured at fair value at the acquisition date (IFRS 3, para. 32). Starting from carrying amounts overstates goodwill. Rule to remember: Goodwill is calculated on net assets at fair value (IFRS 3, para. 32).","es":""}},{"id":"C","text":{"fr":"","en":"100,000, i.e. 5,000,000 less the fair value of the assets alone, without deducting the liabilities assumed.","es":""},"correct":false,"feedback":{"fr":"","en":"Liabilities assumed are recognised together with the identifiable assets (IFRS 3, para. 10) and reduce identifiable net assets (IFRS 3, para. 32). Leaving them out understates goodwill. Rule to remember: Identifiable net assets are net of liabilities assumed (IFRS 3, para. 32).","es":""}},{"id":"D","text":{"fr":"","en":"3,400,000, i.e. identifiable net assets at fair value taken as the amount of goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"3,400,000 is the identifiable net assets, that is what is deducted from the price, not goodwill (IFRS 3, para. 32). Goodwill is the balance between the price paid and those net assets. Rule to remember: Goodwill is the price less identifiable net assets (IFRS 3, para. 32).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000062","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.PURCHASE_PRICE_ALLOCATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000062","tested_point":"QST.IFRS3.000062","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-ppa"},"references":["IFRS 3 §32","IFRS 3 §18","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"Zénith SA acquires 80% of Kora SA for consideration transferred of {consideration}. At the acquisition date, Kora's identifiable assets have a fair value of {assets_fv} and its liabilities assumed {liabilities_fv}; a deferred tax liability of {deferred_tax} and a recognised contingent liability of {contingent_liability} are to be added. Case convention: Zénith measures the 20% non-controlling interest at its fair value of {nci_fv}. Calculate goodwill.","es":""},"explanation":{"fr":"","en":"Method: identifiable net assets: 6,400,000 − 2,100,000 − 180,000 − 70,000 = 4,050,000; goodwill: 4,900,000 + 600,000 − 4,050,000 = 1,450,000. Goodwill is calculated on the net amount of the identifiable assets and liabilities assumed measured under IFRS 3, deferred tax and contingent liability included (IFRS 3, para. 32), items being measured at fair value except for exceptions (IFRS 3). Trap: Leaving out the deferred tax or the contingent liability, which understates goodwill. Rule to remember: The price allocation takes the measurement exceptions into account before calculating goodwill (IFRS 3, para. 32).","es":""},"common_error":{"fr":"","en":"Omitting a measurement exception (deferred tax, contingent liability) in the price allocation.","es":""},"format":"CALCULATION","placeholders":[{"id":"assets_fv","value":"6400000","unit":"EUR"},{"id":"liabilities_fv","value":"2100000","unit":"EUR"},{"id":"deferred_tax","value":"180000","unit":"EUR"},{"id":"contingent_liability","value":"70000","unit":"EUR"},{"id":"consideration","value":"4900000","unit":"EUR"},{"id":"nci_fv","value":"600000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of identifiable assets","es":""},"value":"6400000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of liabilities assumed","es":""},"value":"2100000","unit":"EUR"},{"label":{"fr":"","en":"Deferred tax liability","es":""},"value":"180000","unit":"EUR"},{"label":{"fr":"","en":"Contingent liability recognised","es":""},"value":"70000","unit":"EUR"},{"label":{"fr":"","en":"Consideration transferred","es":""},"value":"4900000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the non-controlling interest","es":""},"value":"600000","unit":"EUR"}],"steps":[{"id":"GOODWILL","label":{"fr":"","en":"Goodwill","es":""},"answer":1450000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL","meaning":{"fr":"","en":"Goodwill","es":""},"expression":"a + b - (c - d - e - f)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":4900000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the non-controlling interest","es":""},"value":600000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Fair value of identifiable assets","es":""},"value":6400000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Fair value of liabilities assumed","es":""},"value":2100000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Deferred tax liability","es":""},"value":180000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Contingent liability recognised","es":""},"value":70000,"unit":"EUR"}],"result":1450000,"unit":"EUR"}],"rationale":{"fr":"","en":"The price allocation takes the measurement exceptions into account before calculating goodwill (IFRS 3, para. 32).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000064","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.BARGAIN_PURCHASE","IFRS3.GOODWILL.REASSESSMENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS3.000002","tested_point":"VG.IFRS3.000002","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-reassess"},"references":["IFRS 3 §34","IFRS 3 §36"],"exercise":{"prompt":{"fr":"","en":"On 1 July, Alpe SA acquires 100% of Dune SA for {consideration}. Dune's identifiable net assets, measured under IFRS 3, are {net_assets}. Case assumption: after checking the identification of all assets and liabilities and reviewing their measurement, the excess remains; there is no non-controlling interest or previously held interest. Calculate the gain on a bargain purchase recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"Method: 2,600,000 − 2,150,000 = 450,000. When the net amount of the identifiable assets acquired and liabilities assumed exceeds the consideration, and that excess remains after the reassessment (IFRS 3, para. 36), the acquirer recognises it in profit or loss at the acquisition date (IFRS 3, para. 34). Trap: Recording negative goodwill as a liability or spreading it over several periods. Rule to remember: The excess that remains after reassessment is a gain in profit or loss at the acquisition date (IFRS 3, para. 34).","es":""},"common_error":{"fr":"","en":"Recording negative goodwill as a liability or spreading it over several periods.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration","value":"2150000","unit":"EUR"},{"id":"net_assets","value":"2600000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Consideration transferred","es":""},"value":"2150000","unit":"EUR"},{"label":{"fr":"","en":"Dune's identifiable net assets","es":""},"value":"2600000","unit":"EUR"}],"steps":[{"id":"BARGAIN_GAIN","label":{"fr":"","en":"Gain on a bargain purchase","es":""},"answer":450000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"BARGAIN_GAIN","meaning":{"fr":"","en":"Gain on a bargain purchase","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Dune's identifiable net assets","es":""},"value":2600000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":2150000,"unit":"EUR"}],"result":450000,"unit":"EUR"}],"rationale":{"fr":"","en":"The excess that remains after reassessment is a gain in profit or loss at the acquisition date (IFRS 3, para. 34).","es":""},"references":["REF.IFRS3.34","REF.IFRS3.36"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000065","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.BARGAIN_PURCHASE","IFRS3.GOODWILL.REASSESSMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000065","tested_point":"QST.IFRS3.000065","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-reassess"},"references":["IFRS 3 §34","IFRS 3 §36"],"exercise":{"prompt":{"fr":"","en":"The net amount of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the non-controlling interest and the previously held interest. Which statements are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"When the net amount of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the non-controlling interest and the previously held interest, and that excess remains after the reassessment, the acquirer recognises it in profit or loss at the acquisition date (IFRS 3, para. 34). Before recognising a gain, it checks the identification of all assets and liabilities and reviews their measurement (IFRS 3, para. 36). Trap: Recognising the gain without reassessment, or spreading it. Rule to remember: Reassessment precedes the gain, which is recognised in profit or loss at the acquisition date (IFRS 3, para. 36).","es":""},"common_error":{"fr":"","en":"Recording negative goodwill as a liability, spreading it, or recognising the gain without reassessment.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The excess is recognised as a liability in negative goodwill, then released to profit or loss over the life of the assets acquired.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not provide for negative goodwill held as a liability: the excess that remains after the reassessment is recognised in profit or loss at the acquisition date (IFRS 3, para. 34). That spreading treatment is not in the text. Rule to remember: The excess is neither carried as a liability nor released over several periods (IFRS 3, para. 34).","es":""}},{"id":"B","text":{"fr":"","en":"Before recognising a gain, the acquirer checks that it has identified all the assets and liabilities, then reviews their measurement.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The excess is spread through profit or loss over several periods, to reflect the benefit obtained over time.","es":""},"correct":false,"feedback":{"fr":"","en":"The excess that remains after the reassessment is recognised in profit or loss at the acquisition date (IFRS 3, para. 34); it is not spread over several periods. Rule to remember: The bargain purchase gain is recognised at the acquisition date (IFRS 3, para. 34).","es":""}},{"id":"D","text":{"fr":"","en":"The gain is recognised without prior reassessment, when the price paid is lower than identifiable net assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The gain is recognised after checking the identification of the items and reviewing the measurements (IFRS 3, para. 36). A price below net assets may come from an identification or measurement error. Rule to remember: Reassessment precedes any bargain purchase gain (IFRS 3, para. 36).","es":""}},{"id":"E","text":{"fr":"","en":"If the excess remains after this reassessment, the acquirer recognises it in profit or loss at the acquisition date.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000067","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.REASSESSMENT","IFRS3.GOODWILL.BARGAIN_PURCHASE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS3.000067","tested_point":"QST.IFRS3.000067","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-reassess"},"references":["IFRS 3 §36","IFRS 3 §34"],"exercise":{"prompt":{"fr":"","en":"In a business combination file, identifiable net assets exceed the price paid, and the analyst at Frêne SA immediately recognises the excess as a gain, without further work. What is the error?","es":""},"explanation":{"fr":"","en":"Before recognising a gain, the acquirer checks that it has correctly identified all the assets acquired and liabilities assumed, then reviews the measurements of the assets and liabilities, the non-controlling interest, the previously held interest and the consideration transferred, so that they reflect all information available at the acquisition date (IFRS 3, para. 36). The excess that remains is then a gain in profit or loss (IFRS 3, para. 34). Trap: Recognising the gain without reviewing the measurements. Rule to remember: Reassessment precedes any gain on a bargain purchase (IFRS 3, para. 36).","es":""},"common_error":{"fr":"","en":"Recognising the gain without reviewing the measurements when net assets exceed the price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The gain is recognised in profit or loss for the period whereas it should have been taken directly to equity, like a first consolidation difference.","es":""},"correct":false,"feedback":{"fr":"","en":"The excess that remains after the reassessment is recognised in profit or loss at the acquisition date (IFRS 3, para. 34); taking it to equity contradicts that text. The analyst's error lies elsewhere. Rule to remember: The bargain purchase gain is recognised in profit or loss (IFRS 3, para. 34).","es":""}},{"id":"B","text":{"fr":"","en":"The comparison ignores the non-controlling interest, which must not enter the comparison with net assets.","es":""},"correct":false,"feedback":{"fr":"","en":"The comparison is made between the net amount of the identifiable assets and the sum of the consideration transferred, the non-controlling interest and the previously held interest (IFRS 3, para. 34). Leaving the interest out distorts the excess. Rule to remember: The non-controlling interest is part of the comparison (IFRS 3, para. 34).","es":""}},{"id":"C","text":{"fr":"","en":"The gain is recognised too early: the acquirer must wait for the end of the reporting period to do so.","es":""},"correct":false,"feedback":{"fr":"","en":"The text does not require waiting for the end of the reporting period: it requires reassessing before recognising the gain (IFRS 3, para. 36), and the gain is recognised at the acquisition date (IFRS 3, para. 34). The file's flaw is the absence of that reassessment. Rule to remember: It is reassessment, not waiting, that conditions the gain (IFRS 3, para. 36).","es":""}},{"id":"D","text":{"fr":"","en":"The gain is recognised without prior reassessment: the identification of assets and liabilities must first be checked, then their measurements reviewed.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000068","standard_id":"IFRS3","concept_ids":["IFRS3.GOODWILL.REASSESSMENT","IFRS3.GOODWILL.BARGAIN_PURCHASE"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000068","tested_point":"QST.IFRS3.000068","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000010","section_id":"rule-reassess"},"references":["IFRS 3 §36","IFRS 3 §34"],"exercise":{"prompt":{"fr":"","en":"Éole SA acquires 100% of Gave SA for 4,000,000. The initially measured identifiable net assets are 4,300,000, an excess of 300,000. The review of measurements, carried out before any gain, reveals an omitted liability assumed of 140,000 and an asset overstated by 60,000. What gain on a bargain purchase does Éole recognise?","es":""},"explanation":{"fr":"","en":"Before recognising a gain, the acquirer checks the identification of all assets and liabilities and reviews their measurements (IFRS 3, para. 36). Here net assets become 4,300,000 − 140,000 − 60,000 = 4,100,000, and the excess over the price of 4,000,000 is 100,000; this excess, which remains after the reassessment, is recognised in profit or loss at the acquisition date (IFRS 3, para. 34). Trap: Recognising the initial gain of 300,000 without taking the review into account. Rule to remember: The gain is the excess that remains after the reassessment (IFRS 3, para. 34).","es":""},"common_error":{"fr":"","en":"Recognising the gain without reviewing the measurements when net assets exceed the price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"100,000, i.e. corrected net assets of 4,100,000 less the price of 4,000,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"300,000, the initial excess, because the review does not change the amount recognised at the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"The review of measurements aims to ensure the amounts reflect the information available at the acquisition date (IFRS 3, para. 36): its corrections change net assets, hence the excess. Keeping 300,000 amounts to ignoring that review. Rule to remember: The excess to recognise is the one that remains after the reassessment (IFRS 3, para. 36).","es":""}},{"id":"C","text":{"fr":"","en":"500,000, the initial excess increased by the two corrections from the review of measurements.","es":""},"correct":false,"feedback":{"fr":"","en":"An omitted liability and an overstated asset reduce identifiable net assets: 4,300,000 − 140,000 − 60,000 = 4,100,000. Adding them to the excess reverses the direction of the corrections (IFRS 3, para. 36). Rule to remember: The corrections reduce net assets here, hence the excess (IFRS 3, para. 36).","es":""}},{"id":"D","text":{"fr":"","en":"160,000, the initial excess corrected for the omitted liability, without taking into account the overstated asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Both corrections are taken into account: the omitted liability (140,000) and the overstated asset (60,000) reduce net assets to 4,100,000 (IFRS 3, para. 36). Applying one correction alone leaves an excess that is too high. Rule to remember: Reassessment takes into account all the corrections identified (IFRS 3, para. 36).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000070","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000070","tested_point":"QST.IFRS3.000070","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"understand"},"references":["IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"The consideration transferred is measured at fair value at the acquisition date; it adds the fair values of the assets transferred by the acquirer, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the acquirer.","es":""},"explanation":{"fr":"","en":"The consideration transferred is measured at fair value at the acquisition date: it is the sum of the fair values of the assets transferred by the acquirer, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the acquirer (IFRS 3, para. 37). Equity interests issued are therefore not taken at nominal value. Trap: Measuring the equity interests issued at nominal value or at the price of another date. Rule to remember: The consideration transferred is measured at fair value at the acquisition date (IFRS 3, para. 37).","es":""},"common_error":{"fr":"","en":"Measuring the equity interests issued at nominal value or at the price of another date.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000071","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.MEASUREMENT","IFRS3.CONSIDERATION.ACQUISITION_COSTS"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000071","tested_point":"QST.IFRS3.000071","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"rule-costs"},"references":["IFRS 3 §37","IFRS 3 §53"],"exercise":{"prompt":{"fr":"","en":"To acquire Verger SA, Colline SA pays {cash_paid} in cash, issues shares with a total nominal value of {shares_nominal} and a fair value at the acquisition date of {shares_fair_value}, and undertakes to pay {liability_to_owners} to the former owners in one year (fair value of that undertaking at the acquisition date). It also pays {acquisition_costs} of advisory fees. Calculate the consideration transferred.","es":""},"explanation":{"fr":"","en":"Method: 1,300,000 + 820,000 + 160,000 = 2,280,000: the consideration adds the cash, the shares issued at fair value and the liability incurred to the former owners (IFRS 3, para. 37). The nominal value (500,000) is not used, and the fees (90,000) are expenses, not part of the consideration (IFRS 3, para. 53). Trap: Using the nominal value of the shares or adding the fees. Rule to remember: The consideration transferred is the sum of the fair values, without acquisition-related costs (IFRS 3, para. 37).","es":""},"common_error":{"fr":"","en":"Measuring the shares issued at nominal value or including the advisory fees in the consideration.","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_paid","value":"1300000","unit":"EUR"},{"id":"shares_fair_value","value":"820000","unit":"EUR"},{"id":"shares_nominal","value":"500000","unit":"EUR"},{"id":"liability_to_owners","value":"160000","unit":"EUR"},{"id":"acquisition_costs","value":"90000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Cash paid","es":""},"value":"1300000","unit":"EUR"},{"label":{"fr":"","en":"Fair value of the shares issued","es":""},"value":"820000","unit":"EUR"},{"label":{"fr":"","en":"Nominal value of the shares issued","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Liability incurred to the former owners","es":""},"value":"160000","unit":"EUR"},{"label":{"fr":"","en":"Advisory fees","es":""},"value":"90000","unit":"EUR"}],"steps":[{"id":"CONSIDERATION_TRANSFERRED","label":{"fr":"","en":"Consideration transferred","es":""},"answer":2280000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CONSIDERATION_TRANSFERRED","meaning":{"fr":"","en":"Consideration transferred","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash paid","es":""},"value":1300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value of the shares issued","es":""},"value":820000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Liability incurred to the former owners","es":""},"value":160000,"unit":"EUR"}],"result":2280000,"unit":"EUR","rationale":{"fr":"","en":"Method: 1,300,000 + 820,000 + 160,000 = 2,280,000: the consideration adds the cash, the shares issued at fair value and the liability incurred to the former owners (IFRS 3, para. 37).","es":""}}],"rationale":{"fr":"","en":"The consideration transferred is the sum of the fair values, without acquisition-related costs (IFRS 3, para. 37).","es":""},"references":["REF.IFRS3.37","REF.IFRS3.53"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000073","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_INITIAL","IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000073","tested_point":"QST.IFRS3.000073","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"understand"},"references":["IFRS 3 §39","IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"On acquiring Prairie SA, Source SA undertakes to pay additional consideration depending on the next year's profit: {amount_1} with a probability of {probability_1}, {amount_2} with a probability of {probability_2} and {amount_3} with a probability of {probability_3}. Case convention: scenarios and probabilities are case data; probability weighting is not the only method of estimating fair value, and the calculation requested is before discounting. Calculate the expected value of the contingent consideration.","es":""},"explanation":{"fr":"","en":"Method: 0 × 30% + 400,000 × 50% + 800,000 × 20% = 0 + 200,000 + 160,000 = 360,000. Contingent consideration is part of the consideration transferred and is recognised at its fair value at the acquisition date (IFRS 3); the consideration transferred is measured at fair value at that date (IFRS 3, para. 37). Weighting the case's scenarios is an illustration, one method among others. Trap: Excluding the contingent consideration until payment is probable. Rule to remember: Contingent consideration is included in the consideration transferred at its fair value (IFRS 3).","es":""},"common_error":{"fr":"","en":"Excluding the contingent consideration from the consideration transferred until payment is probable.","es":""},"format":"CALCULATION","placeholders":[{"id":"amount_1","value":"0","unit":"EUR"},{"id":"probability_1","value":"30","unit":"PERCENT"},{"id":"amount_2","value":"400000","unit":"EUR"},{"id":"probability_2","value":"50","unit":"PERCENT"},{"id":"amount_3","value":"800000","unit":"EUR"},{"id":"probability_3","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Payment in scenario 1","es":""},"value":"0","unit":"EUR"},{"label":{"fr":"","en":"Probability of scenario 1","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Payment in scenario 2","es":""},"value":"400000","unit":"EUR"},{"label":{"fr":"","en":"Probability of scenario 2","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"Payment in scenario 3","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Probability of scenario 3","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_VALUE","label":{"fr":"","en":"Expected value before discounting","es":""},"answer":360000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_VALUE","meaning":{"fr":"","en":"Expected value before discounting","es":""},"expression":"a * b + c * d + e * f","variables":[{"symbol":"a","meaning":{"fr":"","en":"Payment in scenario 1","es":""},"value":0,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Probability of scenario 1","es":""},"value":30,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Payment in scenario 2","es":""},"value":400000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Probability of scenario 2","es":""},"value":50,"unit":"PERCENT"},{"symbol":"e","meaning":{"fr":"","en":"Payment in scenario 3","es":""},"value":800000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Probability of scenario 3","es":""},"value":20,"unit":"PERCENT"}],"result":360000,"unit":"EUR"}],"rationale":{"fr":"","en":"Contingent consideration is included in the consideration transferred at its fair value (IFRS 3).","es":""},"references":["REF.IFRS3.37"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000074","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_INITIAL","IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000074","tested_point":"QST.IFRS3.000074","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"understand"},"references":["IFRS 3 §39","IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"On acquiring Étang SA, Rivage SA pays {cash_paid} in cash and undertakes to pay {contingent_payment} in {years} if an activity target is met. Case convention: the fair value of this contingent consideration is estimated by discounting the payment, assumed certain in the case, at the rate of {discount_rate} (case data, with no probability weighting). Calculate the consideration transferred at the acquisition date.","es":""},"explanation":{"fr":"","en":"Method: 1,210,000 ÷ 1.10² = 1,000,000; 3,000,000 + 1,000,000 = 4,000,000. Contingent consideration is part of the consideration transferred and is recognised at its fair value at the acquisition date (IFRS 3); the consideration transferred is measured at fair value at that date (IFRS 3, para. 37). The discount rate is case data. Trap: Adding the contingent payment undiscounted (4,210,000). Rule to remember: Contingent consideration enters the consideration transferred at its discounted fair value (IFRS 3).","es":""},"common_error":{"fr":"","en":"Excluding the contingent consideration, or including it without discounting.","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_paid","value":"3000000","unit":"EUR"},{"id":"contingent_payment","value":"1210000","unit":"EUR"},{"id":"discount_rate","value":"10","unit":"PERCENT"},{"id":"years","value":"2","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cash paid","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Contingent payment","es":""},"value":"1210000","unit":"EUR"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Time to payment","es":""},"value":"2","unit":"YEARS"}],"steps":[{"id":"CONSIDERATION_TRANSFERRED","label":{"fr":"","en":"Consideration transferred","es":""},"answer":4000000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CONSIDERATION_TRANSFERRED","meaning":{"fr":"","en":"Consideration transferred","es":""},"expression":"a + (b / (1 + c)^2)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash paid","es":""},"value":3000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Contingent payment","es":""},"value":1210000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Discount rate","es":""},"value":10,"unit":"PERCENT"}],"result":4000000,"unit":"EUR"}],"rationale":{"fr":"","en":"Contingent consideration enters the consideration transferred at its discounted fair value (IFRS 3).","es":""},"references":["REF.IFRS3.37"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000076","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_CLASSIFICATION","IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000076","tested_point":"QST.IFRS3.000076","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"rule-classification"},"references":["IFRS 3 §40","IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"In a business combination, the acquirer undertakes to pay additional consideration if the acquiree meets an activity target. How does it classify this obligation to pay contingent consideration?","es":""},"explanation":{"fr":"","en":"The acquirer classifies the obligation to pay contingent consideration as a liability or as an equity instrument in accordance with IAS 32 (IFRS 3). This classification governs subsequent measurement: a liability remeasured at fair value, or equity not remeasured (IFRS 3, para. 58). Trap: Deducing the classification from the method of settlement or management's intention. Rule to remember: Contingent consideration is classified as a liability or equity in accordance with IAS 32 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Classifying as equity an obligation payable in shares without applying IAS 32.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a liability, since the amount depends on uncertain future events, which prevails over the classification criteria.","es":""},"correct":false,"feedback":{"fr":"","en":"The uncertainty of the amount does not settle the classification: it follows IAS 32 (IFRS 3). Concluding to a liability on the basis of the uncertainty skips the analysis provided. Rule to remember: The classification of contingent consideration follows IAS 32 (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"As an equity instrument when settlement is made in the acquirer's shares, whatever the number of shares delivered.","es":""},"correct":false,"feedback":{"fr":"","en":"The method of settlement does not settle it on its own: classification as a liability or equity is made under IAS 32 (IFRS 3). Asserting that delivering shares gives equity bypasses that analysis. Rule to remember: Classification is assessed under IAS 32, not from the means of settlement alone (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"As a liability or as an equity instrument, in accordance with IAS 32.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At the acquirer's choice, without reference to another standard, to reflect management's intention about settlement.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquirer is not free to choose: it classifies the obligation in accordance with IAS 32 (IFRS 3). Management's intention is not the criterion. Rule to remember: The classification of contingent consideration is not an acquirer's choice (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000077","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_CLASSIFICATION","IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS3.000077","tested_point":"QST.IFRS3.000077","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"rule-classification"},"references":["IFRS 3 §40","IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"The analyst at Ormeau SA classified the contingent consideration of a business combination as equity, on the ground that settlement is to be in the acquirer's shares, without further analysis. What is the error?","es":""},"explanation":{"fr":"","en":"The acquirer classifies the obligation to pay contingent consideration as a liability or as an equity instrument in accordance with IAS 32 (IFRS 3); the method of settlement is not enough on its own to conclude. Classification then determines measurement: contingent consideration classified as equity is not remeasured (IFRS 3, para. 58). Trap: Classifying as equity on the sole basis of settlement in shares. Rule to remember: The classification of contingent consideration results from IAS 32 (IFRS 3).","es":""},"common_error":{"fr":"","en":"Classifying as equity an obligation payable in shares without analysing it under IAS 32.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The classification is correct: settlement in the acquirer's shares gives an equity instrument, without further examination.","es":""},"correct":false,"feedback":{"fr":"","en":"Classification follows IAS 32 (IFRS 3): the method of settlement is one element of the analysis, not a conclusion. Endorsing the classification as it stands wrongly dispenses with applying that standard. Rule to remember: Settlement in shares does not on its own settle the classification (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"The classification must result from applying IAS 32; settlement in shares is not enough to conclude that it is an equity instrument.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The error is to have classified the contingent consideration: it is part of the non-controlling interest.","es":""},"correct":false,"feedback":{"fr":"","en":"Contingent consideration is part of the consideration transferred (IFRS 3); it is not an element of the non-controlling interest. Its classification as a liability or equity follows IAS 32 (IFRS 3). Rule to remember: The classification of contingent consideration falls under IAS 32 (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"The error is to have omitted to remeasure it through profit or loss at each reporting date, as a liability would be.","es":""},"correct":false,"feedback":{"fr":"","en":"Contingent consideration classified as equity is not remeasured and its settlement is accounted for within equity (IFRS 3, para. 58): the absence of remeasurement is not the error if the classification is right. Rule to remember: Classification governs subsequent measurement (IFRS 3, para. 58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000079","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"CALCULATION","context":"V1_VG.IFRS3.000003","tested_point":"VG.IFRS3.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"rule-subsequent"},"references":["IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"At the acquisition date of Cormier SA, the contingent consideration classified as a liability has a fair value of {opening_fair_value}. At the reporting date, its fair value is {closing_fair_value}, the increase resulting from better earnings prospects that arose after the acquisition date. Case assumption: the change does not come from information about facts existing at the acquisition date. Calculate the change in fair value to be recognised in profit or loss.","es":""},"explanation":{"fr":"","en":"Method: 340,000 − 255,000 = 85,000: an expense, because the liability increases. After the acquisition date, contingent consideration classified as a liability is measured at fair value and the changes are recognised in profit or loss (IFRS 3, para. 58). Here the change comes from later events: it does not adjust goodwill. Trap: Adjusting goodwill for a change in fair value due to later events. Rule to remember: Changes in the fair value of contingent consideration classified as a liability go to profit or loss (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Adjusting goodwill for a change in the fair value of contingent consideration due to later events.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_fair_value","value":"255000","unit":"EUR"},{"id":"closing_fair_value","value":"340000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value at the acquisition date","es":""},"value":"255000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at the reporting date","es":""},"value":"340000","unit":"EUR"}],"steps":[{"id":"FAIR_VALUE_CHANGE","label":{"fr":"","en":"Change in fair value recognised in profit or loss","es":""},"answer":85000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE_CHANGE","meaning":{"fr":"","en":"Change in fair value recognised in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at the reporting date","es":""},"value":340000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value at the acquisition date","es":""},"value":255000,"unit":"EUR"}],"result":85000,"unit":"EUR"}],"rationale":{"fr":"","en":"Changes in the fair value of contingent consideration classified as a liability go to profit or loss (IFRS 3, para. 58).","es":""},"references":["REF.IFRS3.58"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000080","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000080","tested_point":"QST.IFRS3.000080","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000012","section_id":"rule-subsequent"},"references":["IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"After the acquisition date, how does the acquirer treat contingent consideration? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"After the acquisition date, contingent consideration classified as an asset or a liability is measured at fair value and the changes are recognised in profit or loss (clarification from the 2010-2012 annual improvements); contingent consideration classified as equity is not remeasured and its settlement is accounted for within equity (IFRS 3, para. 58). Trap: Adjusting goodwill or remeasuring consideration classified as equity. Rule to remember: Classification determines later treatment: fair value through profit or loss, or no remeasurement (IFRS 3, para. 58).","es":""},"common_error":{"fr":"","en":"Adjusting goodwill for a later change, or remeasuring consideration classified as equity.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Changes in the fair value of a contingent consideration liability are taken to goodwill, which is adjusted accordingly.","es":""},"correct":false,"feedback":{"fr":"","en":"Changes in the fair value of contingent consideration classified as a liability are recognised in profit or loss (IFRS 3, para. 58); taking them to goodwill amounts to adjusting goodwill for later events. Rule to remember: Later changes in a contingent consideration liability do not alter goodwill (IFRS 3, para. 58).","es":""}},{"id":"B","text":{"fr":"","en":"Contingent consideration classified as equity is remeasured at each reporting date, with changes in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Contingent consideration classified as equity is not remeasured (IFRS 3, para. 58): applying a liability's remeasurement to it confuses the two classifications. Rule to remember: Remeasurement concerns consideration classified as an asset or a liability (IFRS 3, para. 58).","es":""}},{"id":"C","text":{"fr":"","en":"Contingent consideration classified as an asset or a liability is measured at fair value, and the changes are recognised in profit or loss.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The settlement of contingent consideration classified as equity is recognised in profit or loss of the settlement period.","es":""},"correct":false,"feedback":{"fr":"","en":"The settlement of contingent consideration classified as equity is accounted for within equity (IFRS 3, para. 58), not in profit or loss. Rule to remember: The settlement of an equity instrument stays within equity (IFRS 3, para. 58).","es":""}},{"id":"E","text":{"fr":"","en":"Contingent consideration classified as equity is not remeasured, and its settlement is accounted for within equity.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000082","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.ACQUISITION_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS3.000001","tested_point":"VG.IFRS3.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"rule-costs"},"references":["IFRS 3 §53"],"exercise":{"prompt":{"fr":"","en":"The legal advisory fees paid by the acquirer to carry out the business combination are part of the consideration transferred and are therefore included in goodwill.","es":""},"explanation":{"fr":"","en":"Acquisition-related costs (intermediaries' fees, legal fees, etc.) are not part of the consideration transferred: the acquirer recognises them as expenses, separately from the business combination (IFRS 3, para. 53). They therefore do not enter goodwill. Trap: Including advisory fees in the consideration transferred. Rule to remember: Acquisition-related costs are expenses, not part of the consideration transferred (IFRS 3, para. 53).","es":""},"common_error":{"fr":"","en":"Including advisory fees in the consideration transferred and hence in goodwill.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000084","standard_id":"IFRS3","concept_ids":["IFRS3.CONSIDERATION.ACQUISITION_COSTS","IFRS3.CONSIDERATION.MEASUREMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS3.000001","tested_point":"VG.IFRS3.000001","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000011","section_id":"rule-costs"},"references":["IFRS 3 §53","IFRS 3 §37"],"exercise":{"prompt":{"fr":"","en":"To acquire Rocaille SA, Hêtraie SA pays 5,000,000 to the former owners, plus 60,000 to an investment bank for transaction advice and 40,000 of legal fees. How does it treat these 100,000 of costs?","es":""},"explanation":{"fr":"","en":"Acquisition-related costs (intermediaries' fees, legal fees, etc.) are not part of the consideration transferred: the acquirer recognises them as expenses, separately from the business combination (IFRS 3, para. 53). Here 60,000 + 40,000 = 100,000 of expenses, the consideration transferred remaining 5,000,000 (IFRS 3, para. 37). Trap: Including the costs in the consideration or allocating them in the price allocation. Rule to remember: Acquisition-related costs are expenses, separate from the business combination (IFRS 3, para. 53).","es":""},"common_error":{"fr":"","en":"Including advisory fees in the consideration transferred and hence in goodwill.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As expenses, separately from the business combination, without including them in the consideration transferred of 5,000,000.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Capitalised as an intangible asset and amortised over the expected useful life of the assets acquired in the combination.","es":""},"correct":false,"feedback":{"fr":"","en":"Acquisition-related costs are recognised as expenses (IFRS 3, para. 53): capitalising them amounts to treating them as an element of the business combination. Rule to remember: Acquisition-related costs are expenses, not an asset (IFRS 3, para. 53).","es":""}},{"id":"C","text":{"fr":"","en":"Added to the consideration transferred, which becomes 5,100,000, increasing goodwill by 100,000.","es":""},"correct":false,"feedback":{"fr":"","en":"The consideration transferred adds the fair values of the assets transferred, the liabilities incurred to the former owners and the equity interests issued (IFRS 3, para. 37): fees paid to third parties are not part of it (IFRS 3, para. 53). Adding them would wrongly increase goodwill. Rule to remember: Acquisition-related costs do not enter the consideration transferred (IFRS 3, para. 53).","es":""}},{"id":"D","text":{"fr":"","en":"Allocated between goodwill and the identifiable assets acquired, in proportion to their respective fair values.","es":""},"correct":false,"feedback":{"fr":"","en":"Acquisition-related costs are treated separately from the business combination and recognised as expenses (IFRS 3, para. 53); they are allocated neither to goodwill nor to the assets acquired. Rule to remember: Acquisition-related costs stay outside the price allocation (IFRS 3, para. 53).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS3.000085","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.REMEASUREMENT","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000085","tested_point":"QST.IFRS3.000085","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-formula"},"references":["IFRS 3 §42","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Mont SA held 30% of Aval SA, carried at {carrying_amount}. On 30 September, it acquires a further interest that gives it control; the fair value of its previous 30% at that date is {fair_value}. Case convention: an equity-accounted interest, whose remeasurement falls in profit or loss; no amount has been recognised in other comprehensive income in respect of this interest. Calculate the remeasurement gain on the previously held interest.","es":""},"explanation":{"fr":"","en":"Method: 1,480,000 − 1,150,000 = 330,000. In a business combination achieved in stages, the acquirer remeasures its previously held interest at fair value at the acquisition date and recognises the gain or loss in profit or loss or in other comprehensive income as appropriate, here in profit or loss per the case data (IFRS 3, para. 42); that fair value enters the goodwill calculation (IFRS 3, para. 32). Trap: Keeping the previous interest at cost in the goodwill calculation. Rule to remember: The previously held interest is remeasured at fair value, the gain going to profit or loss or to other comprehensive income as appropriate (IFRS 3, para. 42).","es":""},"common_error":{"fr":"","en":"Keeping the previous interest at cost in the goodwill calculation without remeasurement.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"1480000","unit":"EUR"},{"id":"carrying_amount","value":"1150000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of the previous interest","es":""},"value":"1480000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the previous interest","es":""},"value":"1150000","unit":"EUR"}],"steps":[{"id":"REMEASUREMENT_GAIN","label":{"fr":"","en":"Remeasurement gain","es":""},"answer":330000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"REMEASUREMENT_GAIN","meaning":{"fr":"","en":"Remeasurement gain","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the previous interest","es":""},"value":1480000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the previous interest","es":""},"value":1150000,"unit":"EUR"}],"result":330000,"unit":"EUR"}],"rationale":{"fr":"","en":"The previously held interest is remeasured at fair value, the gain going to profit or loss or to other comprehensive income as appropriate (IFRS 3, para. 42).","es":""},"references":["REF.IFRS3.42","REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000088","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.OCI_RECYCLING","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000088","tested_point":"QST.IFRS3.000088","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-formula"},"references":["IFRS 3 §42","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Quartz SA obtains control of Argile SA, in which it held an interest carried at {carrying_amount}. At the acquisition date, the fair value of that interest is {fair_value}. Case convention: a cumulative gain of {oci_balance} is recorded in other comprehensive income in respect of this interest and would be reclassified to profit or loss on a direct disposal; the remeasurement of the interest falls in profit or loss. Calculate the total gain recognised in profit or loss at the acquisition date.","es":""},"explanation":{"fr":"","en":"Method: remeasurement: 1,100,000 − 900,000 = 200,000; reclassification of other comprehensive income: 70,000; total in profit or loss: 200,000 + 70,000 = 270,000. Amounts previously recognised in other comprehensive income in respect of the previously held interest are treated on the same basis as if the acquirer had disposed of the interest directly, hence reclassified to profit or loss here since a direct disposal would require it (IFRS 3, para. 42); the fair value of the interest enters goodwill (IFRS 3, para. 32). Trap: Leaving the cumulative gain in other comprehensive income. Rule to remember: The cumulative gain in other comprehensive income is reclassified to profit or loss on obtaining control when a direct disposal would require it (IFRS 3, para. 42).","es":""},"common_error":{"fr":"","en":"Leaving earlier differences on the interest in other comprehensive income after control is obtained.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"1100000","unit":"EUR"},{"id":"carrying_amount","value":"900000","unit":"EUR"},{"id":"oci_balance","value":"70000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value of the previous interest","es":""},"value":"1100000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount of the previous interest","es":""},"value":"900000","unit":"EUR"},{"label":{"fr":"","en":"Cumulative gain in other comprehensive income","es":""},"value":"70000","unit":"EUR"}],"steps":[{"id":"TOTAL_GAIN_IN_PROFIT_OR_LOSS","label":{"fr":"","en":"Total gain in profit or loss","es":""},"answer":270000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"TOTAL_GAIN_IN_PROFIT_OR_LOSS","meaning":{"fr":"","en":"Total gain in profit or loss","es":""},"expression":"(a - b) + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value of the previous interest","es":""},"value":1100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the previous interest","es":""},"value":900000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Cumulative gain in other comprehensive income","es":""},"value":70000,"unit":"EUR"}],"result":270000,"unit":"EUR"}],"rationale":{"fr":"","en":"The cumulative gain in other comprehensive income is reclassified to profit or loss on obtaining control when a direct disposal would require it (IFRS 3, para. 42).","es":""},"references":["REF.IFRS3.42","REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000090","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.PERIOD","IFRS3.MEASUREMENT_PERIOD.AFTER_PERIOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000090","tested_point":"QST.IFRS3.000090","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-after"},"references":["IFRS 3 §45","IFRS 3 §50"],"exercise":{"prompt":{"fr":"","en":"The measurement period does not exceed one year from the acquisition date and may end earlier if the acquirer obtains the information it was seeking.","es":""},"explanation":{"fr":"","en":"When the initial accounting is incomplete at the reporting date, the acquirer reports provisional amounts; the measurement period does not exceed one year from the acquisition date and may end earlier, as soon as the acquirer obtains the information sought or concludes that it is not available (IFRS 3). After that period, the accounting is changed only to correct an error (IFRS 3, para. 50). Trap: Running the measurement period from the date the accounts are published. Rule to remember: The measurement period starts at the acquisition date and does not exceed one year (IFRS 3).","es":""},"common_error":{"fr":"","en":"Believing the measurement period runs one year from the date the accounts are published.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000091","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.PERIOD","IFRS3.MEASUREMENT_PERIOD.AFTER_PERIOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000091","tested_point":"QST.IFRS3.000091","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-after"},"references":["IFRS 3 §45","IFRS 3 §50"],"exercise":{"prompt":{"fr":"","en":"At the reporting date, the initial accounting for a business combination is incomplete for some items. What does the acquirer do, and for how long can it review those amounts?","es":""},"explanation":{"fr":"","en":"When the initial accounting is incomplete at the reporting date, the acquirer reports provisional amounts; the measurement period does not exceed one year from the acquisition date (IFRS 3). After that period ends, the accounting for the combination is changed only to correct an error in accordance with IAS 8 (IFRS 3, para. 50). Trap: Setting the starting point at the publication date of the accounts or providing no limit. Rule to remember: Provisional amounts during the measurement period, at most one year after the acquisition date (IFRS 3).","es":""},"common_error":{"fr":"","en":"Believing the measurement period runs one year from the date the accounts are published.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It reports provisional amounts and may adjust them for one year from the date the financial statements of the year of the combination are published.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement period is counted from the acquisition date, not from the publication of the financial statements (IFRS 3). Taking publication as the starting point wrongly lengthens the period. Rule to remember: The measurement period starts at the acquisition date (IFRS 3).","es":""}},{"id":"B","text":{"fr":"","en":"It reports provisional amounts and may adjust them during the measurement period, which does not exceed one year from the acquisition date.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It waits until the information is complete before accounting for the combination, without a time limit set by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"When the accounting is incomplete at the reporting date, the acquirer reports provisional amounts (IFRS 3); recognising nothing contradicts this text, and the measurement period does not exceed one year. Rule to remember: Incomplete items are recognised on a provisional basis (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"It reports provisional amounts, adjustable without a time limit as long as new information on fair value reaches it.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement period does not exceed one year from the acquisition date (IFRS 3); after it ends, the accounting for the combination is changed only to correct an error (IFRS 3, para. 50). A period without a limit contradicts these texts. Rule to remember: After the measurement period, only the correction of an error changes the accounting (IFRS 3, para. 50).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000092","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.PERIOD","IFRS3.MEASUREMENT_PERIOD.ADJUSTMENTS","IFRS3.MEASUREMENT_PERIOD.AFTER_PERIOD"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000092","tested_point":"QST.IFRS3.000092","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-adjust"},"references":["IFRS 3 §45","IFRS 3 §46","IFRS 3 §50"],"exercise":{"prompt":{"fr":"","en":"Acquisition of Brande SA on 1 October N. At the reporting date of 31 December N, the valuation of a patent is not complete. The valuer's report received on 15 March N+1 concerns facts and circumstances that existed at 1 October N. What treatment does Brande apply?","es":""},"explanation":{"fr":"","en":"At 31 December N, the accounting for the patent is incomplete: Brande reports a provisional amount. The measurement period does not exceed one year from the acquisition date (IFRS 3); the report received on 15 March N+1 therefore falls within the period, and it concerns facts existing at the acquisition date: the acquirer adjusts the provisional amounts retrospectively, against goodwill (IFRS 3). After that period ends, the accounting is changed only to correct an error (IFRS 3, para. 50). Trap: Taking the adjustment to the profit or loss of the following year. Rule to remember: An adjustment based on facts existing at the acquisition date, received during the measurement period, is retrospective (IFRS 3).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the adjustment of a provisional amount based on facts existing at the acquisition date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It reports a provisional amount at 31 December N, then adjusts the combination retrospectively, the report being received before the end of the measurement period.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The final amount of the patent is recognised in profit or loss of N+1, because the accounting for N has already been published.","es":""},"correct":false,"feedback":{"fr":"","en":"An adjustment based on facts existing at the acquisition date is recognised against goodwill, not in profit or loss (IFRS 3). Charging it to N+1 profit or loss reverses the allocation provided. Rule to remember: The measurement period adjustment is made against goodwill (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"It does not adjust the combination, because the measurement period ended at the reporting date of 31 December N.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement period does not exceed one year from the acquisition date (IFRS 3): it does not stop at the end of the reporting period. At the end of March N+1 it is still running. Rule to remember: The measurement period is not limited to the year of the combination (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"It adjusts the combination if the report is received before the financial statements for N are authorised for issue.","es":""},"correct":false,"feedback":{"fr":"","en":"The limit is the measurement period, at most one year from the acquisition date (IFRS 3), not the date the financial statements for N are authorised for issue. The report received in March N+1 falls within that period. Rule to remember: The time criterion is the measurement period, not publication (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000093","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.ADJUSTMENTS","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000093","tested_point":"QST.IFRS3.000093","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-formula"},"references":["IFRS 3 §45","IFRS 3 §46","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Brise SA acquires 100% of Cirrus SA on 1 March for {consideration}. At the reporting date of 30 June, provisional identifiable net assets are {provisional_net_assets}. In October, before the end of the measurement period, information about facts existing at 1 March reveals an unrecognised liability: identifiable net assets are reduced to {revised_net_assets}. Case convention: there is no non-controlling interest or previously held interest. Calculate the retrospective adjustment to goodwill.","es":""},"explanation":{"fr":"","en":"Method: provisional goodwill: 3,200,000 − 2,000,000 = 1,200,000; adjusted goodwill: 3,200,000 − 1,840,000 = 1,360,000; adjustment: 1,360,000 − 1,200,000 = 160,000. Goodwill is calculated on the net amount of the identifiable assets and liabilities assumed (IFRS 3, para. 32); during the measurement period, the retrospective adjustment of a provisional amount is made against goodwill (IFRS 3, para. 45). Trap: Recognising the adjustment in profit or loss. Rule to remember: A liability revealed by facts existing at the acquisition date increases goodwill (IFRS 3).","es":""},"common_error":{"fr":"","en":"Recognising in profit or loss the adjustment of a provisional amount based on facts existing at the acquisition date.","es":""},"format":"CALCULATION","placeholders":[{"id":"consideration","value":"3200000","unit":"EUR"},{"id":"provisional_net_assets","value":"2000000","unit":"EUR"},{"id":"revised_net_assets","value":"1840000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Consideration transferred","es":""},"value":"3200000","unit":"EUR"},{"label":{"fr":"","en":"Provisional identifiable net assets","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Revised identifiable net assets","es":""},"value":"1840000","unit":"EUR"}],"steps":[{"id":"GOODWILL_ADJUSTMENT","label":{"fr":"","en":"Goodwill adjustment","es":""},"answer":160000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GOODWILL_ADJUSTMENT","meaning":{"fr":"","en":"Goodwill adjustment","es":""},"expression":"(a - b) - (a - c)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Consideration transferred","es":""},"value":3200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Revised identifiable net assets","es":""},"value":1840000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Provisional identifiable net assets","es":""},"value":2000000,"unit":"EUR"}],"result":160000,"unit":"EUR"}],"rationale":{"fr":"","en":"A liability revealed by facts existing at the acquisition date increases goodwill (IFRS 3).","es":""},"references":["REF.IFRS3.45","REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000096","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.AFTER_PERIOD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000096","tested_point":"QST.IFRS3.000096","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-after"},"references":["IFRS 3 §50"],"exercise":{"prompt":{"fr":"","en":"After the end of the measurement period, the acquirer still adjusts goodwill when it receives new information about the fair value of an asset acquired.","es":""},"explanation":{"fr":"","en":"After the end of the measurement period, the accounting for the business combination is changed only to correct an error under IAS 8 (IFRS 3, para. 50). New information therefore does not reopen the goodwill calculation. Trap: Changing goodwill after the end of the measurement period for new information. Rule to remember: After the measurement period, only the correction of an error changes the accounting for the business combination (IFRS 3, para. 50).","es":""},"common_error":{"fr":"","en":"Changing goodwill after the end of the measurement period for new information.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000097","standard_id":"IFRS3","concept_ids":["IFRS3.MEASUREMENT_PERIOD.AFTER_PERIOD"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000097","tested_point":"QST.IFRS3.000097","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000014","section_id":"rule-after"},"references":["IFRS 3 §50"],"exercise":{"prompt":{"fr":"","en":"Fourteen months after the acquisition, Vignes SA, whose measurement period has ended, discovers a calculation error in the measurement of a plot of land at the acquisition date. Which treatment applies?","es":""},"explanation":{"fr":"","en":"After the end of the measurement period, the accounting for the business combination is changed only to correct an error under IAS 8 (IFRS 3, para. 50). Here the calculation error on the land is an error within the meaning of IAS 8: it is corrected under that standard, not through a measurement period adjustment. Trap: Adjusting goodwill for new information or leaving the error as it stands. Rule to remember: After the measurement period, an error is corrected under IAS 8 (IFRS 3, para. 50).","es":""},"common_error":{"fr":"","en":"Changing goodwill after the end of the measurement period for new information.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It recognises the difference in the profit or loss of the current year, without correcting prior periods.","es":""},"correct":false,"feedback":{"fr":"","en":"The correction of an error falls under IAS 8 (IFRS 3, para. 50) and is not a mere difference taken to current profit or loss. This option treats the error as an ordinary change. Rule to remember: An error in the combination is corrected under IAS 8 (IFRS 3, para. 50).","es":""}},{"id":"B","text":{"fr":"","en":"It adjusts goodwill retrospectively, as during the measurement period, without going through the correction of an error.","es":""},"correct":false,"feedback":{"fr":"","en":"After the end of the measurement period, the accounting is changed only to correct an error under IAS 8 (IFRS 3, para. 50); the retrospective adjustment specific to the measurement period is no longer open. Rule to remember: The measurement period adjustment ends with the period (IFRS 3, para. 50).","es":""}},{"id":"C","text":{"fr":"","en":"It corrects nothing: after the measurement period, the accounting for the combination is final.","es":""},"correct":false,"feedback":{"fr":"","en":"The accounting for the combination can be changed after the measurement period to correct an error under IAS 8 (IFRS 3, para. 50). Considering it frozen in all cases disregards that text. Rule to remember: An error can still be corrected after the measurement period (IFRS 3, para. 50).","es":""}},{"id":"D","text":{"fr":"","en":"It corrects the error under IAS 8, the accounting for the combination being changed after the measurement period only for that reason.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000098","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000098","tested_point":"QST.IFRS3.000098","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"rule-principle"},"references":["IFRS 3 §51","IFRS 3 §52"],"exercise":{"prompt":{"fr":"","en":"Which statements about the amounts that are or are not part of the exchange in a business combination are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The acquirer identifies the amounts that are not part of the exchange for the acquiree; it applies the acquisition method only to the consideration transferred and the assets acquired and liabilities assumed in that exchange, and accounts for the other transactions under the applicable IFRSs (IFRS 3, para. 51). A transaction entered into primarily for the benefit of the acquirer is probably a separate transaction; examples: settlement of a pre-existing relationship, remuneration for future services, reimbursement by the seller of the acquirer's acquisition-related costs (IFRS 3, para. 52). Trap: Including in the consideration transferred every payment made to the seller. Rule to remember: What is part of the exchange alone enters the acquisition method (IFRS 3, para. 51).","es":""},"common_error":{"fr":"","en":"Including in the consideration transferred every payment made to the seller in the transaction.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Each payment made to the seller in the transaction is included in the consideration transferred.","es":""},"correct":false,"feedback":{"fr":"","en":"Amounts that are not part of the exchange for the acquiree are excluded from the acquisition method (IFRS 3, para. 51): a payment may belong to another transaction. Including everything in the consideration distorts goodwill. Rule to remember: Only the exchange with the acquiree enters the consideration (IFRS 3, para. 51).","es":""}},{"id":"B","text":{"fr":"","en":"The acquirer applies the acquisition method only to the consideration transferred and the assets acquired and liabilities assumed in the exchange with the acquiree or its former owners.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Separate transactions are accounted for under the acquisition method, with the combination, so as not to distort goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"Separate transactions are accounted for under the applicable IFRSs (IFRS 3, para. 51), outside the acquisition method. Including them distorts the consideration and goodwill. Rule to remember: Separate transactions follow the applicable IFRSs, not the acquisition method (IFRS 3, para. 51).","es":""}},{"id":"D","text":{"fr":"","en":"Remuneration for future services rendered by former owners is an element of the consideration transferred.","es":""},"correct":false,"feedback":{"fr":"","en":"Remuneration for future services is cited among the examples of probably separate transactions (IFRS 3, para. 52): it is not an element of the consideration transferred. Rule to remember: Remuneration for future services is a separate transaction (IFRS 3, para. 52).","es":""}},{"id":"E","text":{"fr":"","en":"A transaction entered into primarily for the benefit of the acquirer rather than the acquiree or its former owners is probably a separate transaction.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000099","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRINCIPLE"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000099","tested_point":"QST.IFRS3.000099","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"rule-principle"},"references":["IFRS 3 §52","IFRS 3 §51"],"exercise":{"prompt":{"fr":"","en":"To acquire Cime SA, Éclat SA pays 8,000,000 to the former owners. Outside the price, the seller reimburses Éclat for 90,000 of acquisition-related costs it had incurred. How is this reimbursement treated?","es":""},"explanation":{"fr":"","en":"The reimbursement by the seller of the acquirer's acquisition-related costs is an example of a probably separate transaction: it is entered into primarily for the benefit of the acquirer rather than the acquiree or its former owners (IFRS 3, para. 52). The acquirer applies the acquisition method to the consideration transferred of 8,000,000 and the items of the exchange, and accounts for the other transactions under the applicable IFRSs (IFRS 3, para. 51). Trap: Deducting the reimbursement from the consideration transferred. Rule to remember: A reimbursement entered into for the acquirer's benefit is a separate transaction (IFRS 3, para. 52).","es":""},"common_error":{"fr":"","en":"Including in, or deducting from, the consideration transferred a payment that is not part of the exchange.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a reduction of the consideration transferred by 90,000, to 7,910,000, which increases the gain or reduces goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"The consideration transferred corresponds to the exchange with the acquiree (IFRS 3, para. 51); a reimbursement entered into for the acquirer's benefit is probably a separate transaction (IFRS 3, para. 52). Deducting it from the price changes the consideration and goodwill. Rule to remember: A separate transaction does not change the consideration transferred (IFRS 3, para. 51).","es":""}},{"id":"B","text":{"fr":"","en":"As a transaction that is probably separate from the combination: entered into for the acquirer's benefit, it is not part of the consideration transferred and follows the applicable IFRSs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As an element of the exchange with the acquiree, accounted for under the acquisition method with the assets and liabilities assumed.","es":""},"correct":false,"feedback":{"fr":"","en":"A transaction entered into primarily for the benefit of the acquirer, rather than the acquiree or its former owners, is probably a separate transaction (IFRS 3, para. 52). Treating it within the acquisition method contradicts that principle. Rule to remember: This transaction falls outside the acquisition method (IFRS 3, para. 52).","es":""}},{"id":"D","text":{"fr":"","en":"As income recognised directly in goodwill, which is reduced accordingly at the acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquirer accounts for the other transactions under the applicable IFRSs (IFRS 3, para. 51); taking the reimbursement directly to goodwill wrongly folds it into the combination. Rule to remember: Separate transactions are not charged to goodwill (IFRS 3, para. 51).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000102","standard_id":"IFRS3","concept_ids":["IFRS3.PART_OF.PRE_EXISTING","IFRS3.PART_OF.PRINCIPLE"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000102","tested_point":"QST.IFRS3.000102","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000015","section_id":"rule-principle"},"references":["IFRS 3 §B52","IFRS 3 §52","IFRS 3 §51"],"exercise":{"prompt":{"fr":"","en":"Fabrique SA acquires Galet SA for 5,000,000. Before the transaction, Fabrique had granted a licence to Galet; the agreement states that 150,000 of the price relates to the settlement of that pre-existing licence. How does Fabrique treat this 150,000?","es":""},"explanation":{"fr":"","en":"The settlement of a pre-existing relationship between the acquirer and the acquiree is a transaction separate from the business combination, accounted for with a gain or loss, measured under para. B52 (IFRS 3, para. B52). It is among the examples of probably separate transactions (IFRS 3, para. 52), and the acquirer applies the acquisition method only to the exchange with the acquiree (IFRS 3, para. 51). Trap: Including the settlement in the consideration transferred. Rule to remember: The settlement of a pre-existing relationship leaves the consideration transferred (IFRS 3, para. 52).","es":""},"common_error":{"fr":"","en":"Including the settlement of a pre-existing debt to the acquirer in the consideration transferred.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As an element of the consideration transferred, which remains 5,000,000 and feeds the goodwill calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"The settlement of a pre-existing relationship between the acquirer and the acquiree is a transaction separate from the business combination (IFRS 3), cited among the probably separate transactions (IFRS 3, para. 52). Including it in the consideration transferred is the error to avoid. Rule to remember: The settlement of a pre-existing relationship does not enter the consideration transferred (IFRS 3, para. 52).","es":""}},{"id":"B","text":{"fr":"","en":"As an additional 150,000 of goodwill, added to the balance calculated at the acquisition date of Galet.","es":""},"correct":false,"feedback":{"fr":"","en":"Separate transactions are accounted for under the applicable IFRSs (IFRS 3, para. 51); adding them to goodwill wrongly folds them into the combination. Rule to remember: A separate transaction does not feed goodwill (IFRS 3, para. 51).","es":""}},{"id":"C","text":{"fr":"","en":"As a separate intangible asset, recognised at 150,000 and amortised with the other assets acquired.","es":""},"correct":false,"feedback":{"fr":"","en":"An intangible asset is recognised if it is part of the exchange (IFRS 3, para. 51); the settlement of a pre-existing relationship is a separate transaction (IFRS 3, para. 52). Capitalising and amortising it mixes the two treatments. Rule to remember: The settlement is not an asset acquired in the exchange (IFRS 3, para. 52).","es":""}},{"id":"D","text":{"fr":"","en":"As the settlement of a pre-existing relationship, a separate transaction: this 150,000 leaves the consideration transferred and follows the applicable IFRSs, with a gain or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000105","standard_id":"IFRS3","concept_ids":["IFRS3.REVERSE.CONSIDERATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000105","tested_point":"QST.IFRS3.000105","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-reverse"},"references":["IFRS 3 §B20"],"exercise":{"prompt":{"fr":"","en":"In a reverse acquisition, how is the consideration transferred by the accounting acquirer measured?","es":""},"explanation":{"fr":"","en":"In a reverse acquisition, the accounting acquirer is deemed to have issued securities to obtain control; the consideration transferred is measured at fair value based on the number of securities that the legal subsidiary would have had to issue to give the owners of the legal acquirer the same interest in the combined entity (IFRS 3, para. B20). Trap: Measuring the consideration at the value of the securities actually issued by the legal acquirer. Rule to remember: The consideration of a reverse acquisition rests on the securities the accounting acquirer would have had to issue (IFRS 3, para. B20).","es":""},"common_error":{"fr":"","en":"Measuring the consideration at the value of the securities actually issued by the legal acquirer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the fair value of the securities actually issued by the legal acquirer at the acquisition date, which are the securities actually delivered.","es":""},"correct":false,"feedback":{"fr":"","en":"In a reverse acquisition, the accounting acquirer is deemed to have issued securities; the consideration is not the fair value of the securities actually issued by the legal acquirer (IFRS 3, para. B20). Using those securities reverses the logic of the transaction. Rule to remember: The consideration is not measured on the securities actually issued by the legal acquirer (IFRS 3, para. B20).","es":""}},{"id":"B","text":{"fr":"","en":"At the carrying amount of the legal acquirer's net assets in its own accounts before the transaction.","es":""},"correct":false,"feedback":{"fr":"","en":"The consideration is measured at fair value from a number of securities that the accounting acquirer is deemed to have issued (IFRS 3, para. B20); the carrying amount of the legal acquirer's net assets is not the measure. Rule to remember: The consideration follows the number of securities deemed issued, at fair value (IFRS 3, para. B20).","es":""}},{"id":"C","text":{"fr":"","en":"At the fair value of the number of securities that the legal subsidiary would have had to issue to give the owners of the legal acquirer the same interest in the combined entity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"At the nominal value of the legal acquirer's securities held by its former owners after the transaction.","es":""},"correct":false,"feedback":{"fr":"","en":"The consideration is measured at fair value, not at nominal value (IFRS 3, para. B20): nominal value does not reflect what the accounting acquirer would have had to issue. Rule to remember: Nominal value does not measure the consideration (IFRS 3, para. B20).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000106","standard_id":"IFRS3","concept_ids":["IFRS3.SUBSEQUENT.GENERAL","IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000106","tested_point":"QST.IFRS3.000106","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-subsequent"},"references":["IFRS 3 §54","IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"As a general rule, after the acquisition date, the acquirer measures and accounts for the assets acquired, the liabilities assumed and the equity instruments issued in accordance with the IFRSs applicable to those items.","es":""},"explanation":{"fr":"","en":"As a general rule, after the acquisition date, the acquirer measures and accounts for the assets acquired, the liabilities assumed and the equity instruments issued in accordance with the IFRSs applicable to those items; IFRS 3 gives specific guidance for reacquired rights, contingent liabilities, indemnification assets and contingent consideration (IFRS 3). For example, contingent consideration classified as a liability is measured at fair value after the acquisition date (IFRS 3, para. 58). Trap: Applying IFRS 3 to the ordinary subsequent measurement of an acquired asset. Rule to remember: Subsequent measurement generally follows the IFRSs applicable to each item (IFRS 3).","es":""},"common_error":{"fr":"","en":"Applying IFRS 3 to the ordinary subsequent measurement of an acquired asset instead of the standard applicable to that asset.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000107","standard_id":"IFRS3","concept_ids":["IFRS3.SUBSEQUENT.GENERAL","IFRS3.CONSIDERATION.CONTINGENT_SUBSEQUENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000107","tested_point":"QST.IFRS3.000107","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000005","section_id":"rule-subsequent"},"references":["IFRS 3 §54","IFRS 3 §58"],"exercise":{"prompt":{"fr":"","en":"Which statements about the subsequent measurement of the items of a business combination are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"As a general rule, after the acquisition date, the acquirer measures and accounts for the assets acquired, the liabilities assumed and the equity instruments issued in accordance with the IFRSs applicable to those items; IFRS 3 gives specific guidance for reacquired rights, contingent liabilities, indemnification assets and contingent consideration (IFRS 3). Contingent consideration classified as a liability is thus measured at fair value, with changes in profit or loss (IFRS 3, para. 58). Trap: Applying IFRS 3 to the ordinary subsequent measurement of an acquired asset. Rule to remember: Subsequent measurement refers to the applicable IFRSs, with limited specific guidance (IFRS 3).","es":""},"common_error":{"fr":"","en":"Applying IFRS 3 to the ordinary subsequent measurement of an acquired asset instead of the standard applicable to that asset.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a general rule, assets acquired, liabilities assumed and equity instruments issued are measured and accounted for after the acquisition date in accordance with the applicable IFRSs.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IFRS 3 sets the ordinary subsequent measurement of assets acquired, replacing that of the other standards.","es":""},"correct":false,"feedback":{"fr":"","en":"Ordinary subsequent measurement follows the IFRSs applicable to each item (IFRS 3); IFRS 3 does not replace it. Giving it that role turns the standard into a current measurement framework. Rule to remember: IFRS 3 does not measure ordinary assets after the acquisition date (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 3 gives specific guidance for reacquired rights, contingent liabilities, indemnification assets and contingent consideration.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The specific guidance in IFRS 3 covers the items acquired exhaustively, without reference to other standards.","es":""},"correct":false,"feedback":{"fr":"","en":"The general rule refers to the applicable IFRSs (IFRS 3), with a few specific pieces of guidance in IFRS 3. Saying they cover everything erases that reference. Rule to remember: The specific guidance in IFRS 3 is limited to certain items (IFRS 3).","es":""}},{"id":"E","text":{"fr":"","en":"After the acquisition date, the items acquired remain measured at their acquisition-date fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Measurement after the acquisition date follows the IFRSs applicable to each item (IFRS 3), and contingent consideration classified as a liability, for example, is remeasured at fair value (IFRS 3, para. 58). Freezing the initial fair value contradicts that principle. Rule to remember: The acquisition-date fair value is not frozen for every item (IFRS 3, para. 58).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000108","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000108","tested_point":"QST.IFRS3.000108","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-objective"},"references":["IFRS 3 §59","IFRS 3 §60"],"exercise":{"prompt":{"fr":"","en":"Which statements about the objective of the disclosures on a business combination are correct? More than one answer is possible.","es":""},"explanation":{"fr":"","en":"The acquirer discloses information that enables users to evaluate the nature and financial effect of a business combination effected during the period or after the reporting date but before the financial statements are authorised for issue (IFRS 3, para. 59); to that end it discloses the information specified in paragraphs B64 to B66 (IFRS 3, para. 60). Trap: Disclosing no information for a business combination effected after the reporting date but before authorisation for issue. Rule to remember: The objective also covers combinations after the reporting date and before authorisation (IFRS 3, para. 59).","es":""},"common_error":{"fr":"","en":"Disclosing no information for a business combination effected after the reporting date but before authorisation for issue.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The acquirer discloses information that enables users to evaluate the nature and financial effect of a business combination effected during the period.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The objective also covers a business combination effected after the reporting date but before the financial statements are authorised for issue.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A business combination effected after the reporting date is ignored in the period's disclosures, even if it occurs before authorisation for issue.","es":""},"correct":false,"feedback":{"fr":"","en":"The objective concerns a business combination effected during the period or after the reporting date but before authorisation for issue (IFRS 3, para. 59). Ignoring the second case leaves a business combination the objective covers without information. Rule to remember: A combination after the reporting date but before authorisation falls within the objective (IFRS 3, para. 59).","es":""}},{"id":"D","text":{"fr":"","en":"To meet this objective, the acquirer discloses the information specified in paragraphs B64 to B66.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The objective is to enable users to forecast the acquiree's future profit over several periods.","es":""},"correct":false,"feedback":{"fr":"","en":"The objective is to evaluate the nature and financial effect of the combination (IFRS 3, para. 59), not to forecast the acquiree's future profit. That reading shifts the objective to a forecast the text does not target. Rule to remember: The objective concerns the nature and financial effect of the combination (IFRS 3, para. 59).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000110","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.SPECIFIC_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000110","tested_point":"QST.IFRS3.000110","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-specific"},"references":["IFRS 3 §B64"],"exercise":{"prompt":{"fr":"","en":"Among the disclosures on the period's business combinations, which one corresponds to the pro forma information provided for?","es":""},"explanation":{"fr":"","en":"The disclosures on each business combination are set out in paragraphs B64 to B66; among them is the pro forma information on the revenue and profit of the combined entity as if all the period's business combinations had taken place at the beginning of the period (IFRS 3, para. B64). For the user, it shows the effect of the combinations over a full period. Trap: Omitting the pro forma information or setting its reference date at the end of the period. Rule to remember: Pro forma information covers revenue and profit, with the combinations assumed at the beginning of the period (IFRS 3, para. B64).","es":""},"common_error":{"fr":"","en":"Omitting the pro forma information on revenue and profit of the combined entity.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The revenue and profit of the combined entity prepared as if all the period's business combinations had taken place at the beginning of the period.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The revenue and profit of the combined entity prepared as if the period's business combinations had taken place at the end of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The reference date of the pro forma information is the beginning of the period, not the end (IFRS 3, para. B64). A presentation stopped at the end of the period does not give the expected effect over the whole period. Rule to remember: Pro forma information assumes the business combinations at the beginning of the period (IFRS 3, para. B64).","es":""}},{"id":"C","text":{"fr":"","en":"The revenue of the combined entity prepared as if the business combinations had taken place at the beginning of the period, without profit.","es":""},"correct":false,"feedback":{"fr":"","en":"The pro forma information covers both the revenue and the profit of the combined entity (IFRS 3, para. B64): leaving out the profit gives incomplete information. Rule to remember: Pro forma information includes revenue and profit (IFRS 3, para. B64).","es":""}},{"id":"D","text":{"fr":"","en":"The revenue and profit of the combined entity prepared at the acquisition date of each business combination, without restatement.","es":""},"correct":false,"feedback":{"fr":"","en":"The pro forma information is prepared as if the business combinations had taken place at the beginning of the period (IFRS 3, para. B64), not at their actual acquisition dates. Using those dates does not produce the information required. Rule to remember: Pro forma information uses a hypothetical date, the beginning of the period (IFRS 3, para. B64).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000111","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.ADJUSTMENTS","IFRS3.DISCLOSURE.OBJECTIVE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000111","tested_point":"QST.IFRS3.000111","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-objective"},"references":["IFRS 3 §61","IFRS 3 §59"],"exercise":{"prompt":{"fr":"","en":"What is the scope of the information the acquirer discloses about adjustments to a business combination?","es":""},"explanation":{"fr":"","en":"The acquirer also discloses information about adjustments recognised in the period that relate to business combinations of the period or of prior periods (IFRS 3, para. 61); the detail of that information is set out in para. B67. This information adds to that on the period's business combinations (IFRS 3, para. 59). Trap: Not stating which items remain provisional or why. Rule to remember: The information on adjustments covers combinations of the period and of prior periods (IFRS 3, para. 61).","es":""},"common_error":{"fr":"","en":"Not stating which items remain provisional or why.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Adjustments recognised in the period that relate to business combinations effected in that period.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope is wider: it also includes adjustments of the period that relate to business combinations of prior periods (IFRS 3, para. 61). Limiting the information to the period's combinations leaves part of it out. Rule to remember: Combinations of prior periods are also concerned (IFRS 3, para. 61).","es":""}},{"id":"B","text":{"fr":"","en":"Adjustments relating to business combinations of prior periods, excluding those of the current period.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope includes adjustments of the period relating to business combinations of the period or of prior periods (IFRS 3, para. 61): excluding those of the current period is a reverse reading. Rule to remember: Both categories of combinations are concerned (IFRS 3, para. 61).","es":""}},{"id":"C","text":{"fr":"","en":"Adjustments recognised after the reporting date, before authorisation for issue, that relate to a business combination.","es":""},"correct":false,"feedback":{"fr":"","en":"The adjustments concerned are those recognised during the period (IFRS 3, para. 61), not those after the reporting date; information after the reporting date falls under the general objective (IFRS 3, para. 59). Confusing the two shifts the information. Rule to remember: The criterion is the adjustment recognised during the period (IFRS 3, para. 61).","es":""}},{"id":"D","text":{"fr":"","en":"Adjustments recognised in the period that relate to business combinations of the period or of prior periods.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000112","standard_id":"IFRS3","concept_ids":["IFRS3.DISCLOSURE.PROPOSED_CHANGES","IFRS3.DISCLOSURE.SPECIFIC_ITEMS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000112","tested_point":"QST.IFRS3.000112","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000016","section_id":"rule-specific"},"references":["IFRS 3","IFRS 3 §B64"],"exercise":{"prompt":{"fr":"","en":"The IASB's March 2024 exposure draft on business combinations is a standard in force that already requires acquirers to disclose the strategic rationale of business combinations.","es":""},"explanation":{"fr":"","en":"The March 2024 exposure draft is a proposal only, not a standard: the IASB is redeliberating and no final decision has been taken to date. The disclosures in force include the primary reasons for the combination, which the exposure draft proposes to replace with the strategic rationale (IFRS 3, para. B64). Trap: Presenting an IASB proposal as a requirement in force. Rule to remember: A proposal in an exposure draft is not a requirement in force (IFRS 3, para. B64).","es":""},"common_error":{"fr":"","en":"Presenting an IASB proposal as a requirement in force.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000113","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IFRS10"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000113","tested_point":"QST.IFRS3.000113","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000003","section_id":"rule-ifrs10"},"references":["IFRS 3","IFRS 3 §7"],"exercise":{"prompt":{"fr":"","en":"Sommet SA already controls Falaise SA since its business combination. It then buys a further share of its securities from the minority shareholders, without losing or changing its control. How does it account for this acquisition?","es":""},"explanation":{"fr":"","en":"Once control is obtained, later increases and decreases in the ownership percentage without loss of control are transactions between shareholders recognised in equity, with no new goodwill or gain or loss (IFRS 10, paras. 23 and B96). The acquirer of Falaise was identified when control was obtained, using the guidance on control (IFRS 3, para. 7). Trap: Recognising new goodwill on the purchase of additional shares of an already controlled subsidiary. Rule to remember: After control is obtained, a purchase of shares without change of control goes through equity (IFRS 3).","es":""},"common_error":{"fr":"","en":"Recognising new goodwill on the purchase of additional shares of an already controlled subsidiary.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a transaction between shareholders recognised in equity, with no new goodwill or gain or loss.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Under the acquisition method, with additional goodwill calculated on the share bought.","es":""},"correct":false,"feedback":{"fr":"","en":"Control has already been obtained: the acquirer was identified by the guidance on control (IFRS 3, para. 7), and later increases in the ownership percentage without loss of control give no new goodwill (IFRS 3). Rule to remember: A purchase of shares after control is obtained does not fall under the acquisition method (IFRS 3).","es":""}},{"id":"C","text":{"fr":"","en":"In profit or loss, for the difference between the price paid and the share of the non-controlling interest acquired.","es":""},"correct":false,"feedback":{"fr":"","en":"Later increases in the ownership percentage without loss of control are transactions between shareholders recognised in equity, with no gain or loss (IFRS 3). Taking the difference to profit or loss does not follow that treatment. Rule to remember: A purchase of shares after control is obtained has no effect on profit or loss (IFRS 3).","es":""}},{"id":"D","text":{"fr":"","en":"As a new business combination achieved in stages, with remeasurement at fair value of the interest already held.","es":""},"correct":false,"feedback":{"fr":"","en":"Control has already been obtained (IFRS 3, para. 7): the remeasurement of the interest already held concerns the obtaining of control and not a later purchase of shares (IFRS 3). Rule to remember: A purchase of shares after control is obtained does not reopen the business combination (IFRS 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000115","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IAS36","IFRS3.NCI.MEASUREMENT_CHOICE","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"CALCULATION","context":"V1_QST.IFRS3.000115","tested_point":"QST.IFRS3.000115","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":200,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000008","section_id":"rule-choice"},"references":["IFRS 3","IFRS 3 §19","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Cristal SA acquired {parent_percent} of Sable SA and measured the non-controlling interest at its proportionate share of identifiable net assets; the goodwill recognised is {goodwill_recognised}. Sable is a cash-generating unit to which this goodwill is allocated. Case convention: the goodwill recognised belongs entirely to the {parent_percent} share. Calculate the carrying amount of goodwill grossed up to 100% before comparison with the recoverable amount.","es":""},"explanation":{"fr":"","en":"Method: 300,000 ÷ 75% = 400,000; the portion attributable to the non-controlling interest is 100,000. The calculation of goodwill includes the non-controlling interest (IFRS 3, para. 32). When that interest is measured at the proportionate share (IFRS 3), the carrying amount of the goodwill allocated to the unit is grossed up before the comparison with the recoverable amount (IAS 36, para. 80). Trap: Comparing the goodwill of 300,000 with the recoverable amount of the whole unit. Rule to remember: With the proportionate share, allocated goodwill is grossed up to 100% before the test (IAS 36, para. 80).","es":""},"common_error":{"fr":"","en":"Comparing partial goodwill with the recoverable amount of the whole unit without grossing it up.","es":""},"format":"CALCULATION","placeholders":[{"id":"goodwill_recognised","value":"300000","unit":"EUR"},{"id":"parent_percent","value":"75","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Goodwill recognised (acquirer's share)","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Percentage held by the acquirer","es":""},"value":"75","unit":"PERCENT"}],"steps":[{"id":"GROSSED_UP_GOODWILL","label":{"fr":"","en":"Goodwill grossed up to 100%","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"GROSSED_UP_GOODWILL","meaning":{"fr":"","en":"Goodwill grossed up to 100%","es":""},"expression":"a / b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Goodwill recognised (acquirer's share)","es":""},"value":300000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Percentage held by the acquirer","es":""},"value":75,"unit":"PERCENT"}],"result":400000,"unit":"EUR"}],"rationale":{"fr":"","en":"With the proportionate share, allocated goodwill is grossed up to 100% before the test (IAS 36, para. 80).","es":""},"references":["REF.IFRS3.32"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000116","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IAS36","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000116","tested_point":"QST.IFRS3.000116","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":130,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-formula"},"references":["IFRS 3","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Zodiac SA acquires Tessin SA and recognises goodwill of 600,000. The expected synergies will benefit Zodiac's cash-generating units North and South, which are monitored separately for internal management purposes, and not Tessin itself. How does it allocate the goodwill?","es":""},"explanation":{"fr":"","en":"Goodwill acquired in a business combination is, from the acquisition date, allocated to the acquirer's cash-generating units (or groups of units) expected to benefit from the synergies; each unit represents the lowest level at which goodwill is monitored for internal management purposes and is not larger than an operating segment (IAS 36, para. 80). Goodwill itself is the calculated balance of the combination (IFRS 3, para. 32). Here: North and South, which benefit from the synergies and are monitored internally. Trap: Amortising goodwill or allocating it to the acquiree alone. Rule to remember: Goodwill is allocated to the acquirer's units that benefit from the synergies (IAS 36, para. 80).","es":""},"common_error":{"fr":"","en":"Allocating goodwill to the acquiree by default without considering the units that benefit from the synergies.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To the unit that groups Tessin's acquired assets, because it is the one that generated the goodwill.","es":""},"correct":false,"feedback":{"fr":"","en":"Goodwill is allocated to the acquirer's units expected to benefit from the synergies, not by default to the acquiree (IAS 36, para. 80). Tying goodwill to the acquired assets alone ignores where the synergies arise. Rule to remember: Allocation follows the expected synergies, not the origin of the goodwill (IAS 36, para. 80).","es":""}},{"id":"B","text":{"fr":"","en":"To the acquirer's units North and South expected to benefit from the synergies, each unit remaining at the level at which goodwill is monitored for internal management purposes, not larger than an operating segment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To Zodiac's broadest operating segment, whatever the way goodwill is monitored internally.","es":""},"correct":false,"feedback":{"fr":"","en":"The allocation level is the lowest at which goodwill is monitored for internal management purposes, and it is not larger than an operating segment (IAS 36, para. 80). Choosing the broadest ignores internal monitoring. Rule to remember: The allocation level depends on internal monitoring, under the ceiling of an operating segment (IAS 36, para. 80).","es":""}},{"id":"D","text":{"fr":"","en":"To units North and South, but at a level that management sets freely, even beyond an operating segment.","es":""},"correct":false,"feedback":{"fr":"","en":"Each unit represents the lowest level at which goodwill is monitored for internal management purposes, not larger than an operating segment (IAS 36, para. 80). A level set freely, beyond that ceiling, is not contemplated. Rule to remember: The operating segment ceiling bounds the allocation level (IAS 36, para. 80).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000118","standard_id":"IFRS3","concept_ids":["IFRS3.INTERACTIONS.IAS38","IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000118","tested_point":"QST.IFRS3.000118","difficulty":"ADVANCED","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §B33","IFRS 3 §10"],"exercise":{"prompt":{"fr":"","en":"The separability of an intangible asset acquired in a business combination depends on the acquirer's intention to sell or dispose of it.","es":""},"explanation":{"fr":"","en":"The separability of an intangible asset is assessed independently of the acquirer's intentions; the existence of exchange transactions, even infrequent, for that type of asset or a similar one is evidence of it (IFRS 3, para. B33). The acquirer recognises the identifiable assets acquired separately from goodwill (IFRS 3, para. 10). Trap: Leaving out an identifiable intangible because the acquirer does not intend to dispose of it. Rule to remember: The acquirer's intentions do not condition separability (IFRS 3, para. B33).","es":""},"common_error":{"fr":"","en":"Applying a criterion based on the acquirer's intentions to refuse to recognise an acquired identifiable intangible.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000120","standard_id":"IFRS3","concept_ids":["IFRS3.SCOPE.OVERVIEW"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000120","tested_point":"QST.IFRS3.000120","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000001","section_id":"rule-scope"},"references":["IFRS 3 §3"],"exercise":{"prompt":{"fr":"","en":"Orvane SA obtains control of a set of assets and liabilities. Where does the IFRS 3 analysis start?","es":""},"explanation":{"fr":"","en":"An entity determines whether a transaction is a business combination by applying the IFRS 3 definition, which requires that the assets acquired and liabilities assumed constitute a business; if not, it accounts for the transaction as an asset acquisition (IFRS 3, para. 3). Trap: applying the acquisition method to any obtaining of control over assets. Rule to remember: first classify the acquired set (business or not), only then choose the accounting.","es":""},"common_error":{"fr":"","en":"Applying the acquisition method without checking that the acquired set is a business.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"With the automatic application of the acquisition method, once control of the assets is obtained.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition method requires a business combination; it must first be established that the acquired set is a business (IFRS 3, para. 3).","es":""}},{"id":"B","text":{"fr":"","en":"With whether the assets acquired and liabilities assumed constitute a business; if not, it is an asset acquisition.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"With a comparison of the price paid and the carrying amount of the assets: a positive difference signals a combination.","es":""},"correct":false,"feedback":{"fr":"","en":"The price paid does not classify the transaction: what counts is the nature of the acquired set, business or not (IFRS 3, para. 3).","es":""}},{"id":"D","text":{"fr":"","en":"With the classification used in the acquisition agreement, which is binding for accounting purposes.","es":""},"correct":false,"feedback":{"fr":"","en":"The accounting classification follows from the IFRS 3 definition applied to the facts, not from the title of the agreement (IFRS 3, para. 3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000121","standard_id":"IFRS3","concept_ids":["IFRS3.RECOGNITION.PRINCIPLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS3.000121","tested_point":"QST.IFRS3.000121","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":50,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000004","section_id":"rule-principle"},"references":["IFRS 3 §12","IFRS 3 §11"],"exercise":{"prompt":{"fr":"","en":"An asset that meets, at the acquisition date, the definition of an asset in the Conceptual Framework is recognised in applying the acquisition method, even if it results from a separate transaction concluded with the former owners of the acquiree.","es":""},"explanation":{"fr":"","en":"To be recognised in applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet, at the acquisition date, the definitions in the Conceptual Framework (IFRS 3, para. 11) and be part of what the acquirer and the acquiree, or its former owners, exchanged in the business combination, rather than the result of separate transactions (IFRS 3, para. 12). Trap: stopping at the first condition. Rule to remember: two conditions, definition at the acquisition date and part of the exchange.","es":""},"common_error":{"fr":"","en":"Recognising in the combination an item resulting from a separate transaction with the former owners.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000122","standard_id":"IFRS3","concept_ids":["IFRS3.STAGES.REMEASUREMENT","IFRS3.GOODWILL.MEASUREMENT"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000122","tested_point":"QST.IFRS3.000122","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000009","section_id":"rule-formula"},"references":["IFRS 3 §41","IFRS 3 §42","IFRS 3 §32"],"exercise":{"prompt":{"fr":"","en":"Just before 1 April, Pélan SA held 30 per cent of Quercy SA, its associate. On 1 April, it acquires a further 40 per cent and obtains control of Quercy. Case data: Quercy is a business. How should the transaction be classified?","es":""},"explanation":{"fr":"","en":"A business combination achieved in stages is one in which the acquirer obtains control of an entity in which it held an interest immediately before the acquisition date (IFRS 3, para. 41). The acquirer then remeasures the previously held interest at its acquisition-date fair value and recognises any gain or loss in profit or loss or in other comprehensive income, as appropriate (IFRS 3, para. 42); this fair value enters the goodwill calculation (IFRS 3, para. 32). That Quercy is a business is case data. Trap: keeping the previously held interest at its carrying amount. Rule to remember: control obtained over an entity already partly held, combination achieved in stages and remeasurement of the previously held interest.","es":""},"common_error":{"fr":"","en":"Keeping the previously held interest at its carrying amount in the goodwill calculation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A business combination achieved in stages: the 30 per cent interest is remeasured at fair value, which enters the goodwill calculation.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A mere additional purchase of shares: the 30 per cent stays at its carrying amount in the goodwill calculation.","es":""},"correct":false,"feedback":{"fr":"","en":"The previously held interest is not kept at its carrying amount: it is remeasured at its acquisition-date fair value (IFRS 3, paras. 42 and 32).","es":""}},{"id":"C","text":{"fr":"","en":"A combination whose acquisition date is the date of the 30 per cent purchase, Pélan's first investment.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition date is the date control is obtained, 1 April; the 30 per cent is an interest held immediately before that date (IFRS 3, para. 41).","es":""}},{"id":"D","text":{"fr":"","en":"It is not a business combination, since Pélan already held an interest in Quercy.","es":""},"correct":false,"feedback":{"fr":"","en":"Already holding an interest does not exclude a business combination: it is precisely the case of a combination achieved in stages (IFRS 3, para. 41).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS3.000123","standard_id":"IFRS3","concept_ids":["IFRS3.BUSINESS.SUBSTANTIVE_PROCESS"],"dimension":"APPLICATION","context":"V1_QST.IFRS3.000123","tested_point":"QST.IFRS3.000123","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":120,"lesson_id":null,"review":{"standard_id":"IFRS3","lesson_id":"LS.IFRS3.000002","section_id":"rule-substantive"},"references":["IFRS 3 §B12C","IFRS 3 §B8A"],"exercise":{"prompt":{"fr":"","en":"Rivel SA acquires a production line for optical lenses that already generates sales, without taking on any employees. Judgement retained in the case: the acquired manufacturing process contributes significantly to the ability to continue producing outputs and could not be replaced without significant cost, effort or delay. Is the acquired process substantive?","es":""},"explanation":{"fr":"","en":"When the acquired set has outputs at the acquisition date, an acquired process applied to an acquired input is substantive either if it is critical to the ability to continue producing outputs and the acquired inputs include an organised workforce with the skills to perform it, or if it contributes significantly to that ability and is considered unique or scarce, or cannot be replaced without significant cost, effort or delay (IFRS 3, para. B12C). The second route does not require a workforce to be taken on. The continuation of revenue does not on its own indicate that a substantive process has been acquired (IFRS 3, para. B8A). Assessing significance and replacement cost is a professional judgement, given here by the case. Trap: requiring a workforce in every case, or concluding from continued sales alone. Rule to remember: with outputs, two routes to a substantive process.","es":""},"common_error":{"fr":"","en":"Concluding that a process is substantive solely because revenue continues.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: when the set has outputs, a process is substantive only if an organised workforce with the necessary skills is taken on.","es":""},"correct":false,"feedback":{"fr":"","en":"A workforce taken on is required only in the first route; a process that contributes significantly and cannot be replaced without significant cost, effort or delay is also substantive (IFRS 3, para. B12C).","es":""}},{"id":"B","text":{"fr":"","en":"Yes, but solely because the line's sales will continue after the acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"The conclusion is right but the reason is not: continuation of revenue does not on its own indicate a substantive process (IFRS 3, para. B8A).","es":""}},{"id":"C","text":{"fr":"","en":"Yes: it contributes significantly to the ability to continue producing outputs and cannot be replaced without significant cost, effort or delay.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The question does not arise: the substantive process criteria apply only to sets without outputs.","es":""},"correct":false,"feedback":{"fr":"","en":"Sets with outputs have their own criteria, those of para. B12C (IFRS 3, para. B12C).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IFRS3.000001":"A business combination or a simple purchase of assets? — The rule: three excluded transactions","LX.IFRS3.000002":"A business combination or a simple purchase of assets? — Asset acquisition: no business, no goodwill","LX.IFRS3.000003":"A business combination or a simple purchase of assets? — The rule: three excluded transactions","LX.IFRS3.000004":"A business combination or a simple purchase of assets? — Common control: the same party before and after","LX.IFRS3.000005":"A business combination or a simple purchase of assets? — Understand: buying a business is not buying things","LX.IFRS3.000006":"A business combination or a simple purchase of assets? — Asset acquisition: no business, no goodwill","LX.IFRS3.000007":"A business combination or a simple purchase of assets? — The formation of a joint arrangement","LX.IFRS3.000008":"A business combination or a simple purchase of assets? — Professional judgement: is common control transitory?","LX.IFRS3.000009":"What is a business? Inputs, processes and outputs — Understand: an oven does not make a bakery","LX.IFRS3.000010":"What is a business? Inputs, processes and outputs — The rule: spotting inputs and processes","LX.IFRS3.000011":"What is a business? Inputs, processes and outputs — Understand: an oven does not make a bakery","LX.IFRS3.000012":"What is a business? Inputs, processes and outputs — The minimum condition: an input and a substantive process","LX.IFRS3.000013":"What is a business? Inputs, processes and outputs — The minimum condition: an input and a substantive process","LX.IFRS3.000014":"What is a business? Inputs, processes and outputs — The minimum condition: an input and a substantive process","LX.IFRS3.000015":"What is a business? Inputs, processes and outputs — The optional concentration test","LX.IFRS3.000016":"What is a business? Inputs, processes and outputs — The optional concentration test","LX.IFRS3.000017":"The acquirer and the acquisition date — The rule: control designates the acquirer","LX.IFRS3.000018":"The acquirer and the acquisition date — The rule: control designates the acquirer","LX.IFRS3.000019":"The acquirer and the acquisition date — The acquisition date: the day control passes","LX.IFRS3.000020":"The acquirer and the acquisition date — Example: a control date earlier than closing","LX.IFRS3.000021":"The acquirer and the acquisition date — Indicators when control does not settle the matter","LX.IFRS3.000022":"The acquirer and the acquisition date — Link to IFRS 10: after control is obtained","LX.IFRS3.000023":"The acquirer and the acquisition date — The reverse acquisition: the issuer is the acquiree","LX.IFRS3.000024":"The acquirer and the acquisition date — The reverse acquisition: the issuer is the acquiree","LX.IFRS3.000025":"The acquirer and the acquisition date — Professional judgement: two entities, two candidates","LX.IFRS3.000026":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","LX.IFRS3.000027":"Recognising the items acquired, separately from goodwill — Understand: opening the box before paying for goodwill","LX.IFRS3.000028":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","LX.IFRS3.000029":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","LX.IFRS3.000030":"Recognising the items acquired, separately from goodwill — Classifying and designating at the acquisition date","LX.IFRS3.000031":"Recognising the items acquired, separately from goodwill — Identifiable intangibles: contract, legal right or separability","LX.IFRS3.000032":"Recognising the items acquired, separately from goodwill — Identifiable intangibles: contract, legal right or separability","LX.IFRS3.000033":"Recognising the items acquired, separately from goodwill — Link to IAS 38: the acquired intangible and the internal one","LX.IFRS3.000034":"Measuring at fair value: identifiable net assets — The rule: fair value at the acquisition date, except for exceptions","LX.IFRS3.000035":"Measuring at fair value: identifiable net assets — The rule: fair value at the acquisition date, except for exceptions","LX.IFRS3.000036":"Measuring at fair value: identifiable net assets — Worked example: from carrying amount to fair value","LX.IFRS3.000037":"Measuring at fair value: identifiable net assets — The rule: fair value at the acquisition date, except for exceptions","LX.IFRS3.000038":"Measuring at fair value: identifiable net assets — The rule: fair value at the acquisition date, except for exceptions","LX.IFRS3.000039":"Measuring at fair value: identifiable net assets — Worked example: from carrying amount to fair value","LX.IFRS3.000040":"Measuring at fair value: identifiable net assets — Link to IFRS 13: where the fair values come from","LX.IFRS3.000041":"Measuring at fair value: identifiable net assets — After the acquisition date: the applicable IFRS, with four specific rules","LX.IFRS3.000042":"The main exceptions: contingent liabilities and deferred taxes — Contingent liabilities: recognised with no probability test","LX.IFRS3.000043":"The main exceptions: contingent liabilities and deferred taxes — Contingent liabilities: recognised with no probability test","LX.IFRS3.000044":"The main exceptions: contingent liabilities and deferred taxes — Worked example: a lawsuit taken over by Brevane","LX.IFRS3.000045":"The main exceptions: contingent liabilities and deferred taxes — Worked example: a building remeasured at fair value","LX.IFRS3.000046":"The main exceptions: contingent liabilities and deferred taxes — Worked example: a building remeasured at fair value","LX.IFRS3.000047":"The main exceptions: contingent liabilities and deferred taxes — Link to IAS 12: what the combination changes","LX.IFRS3.000048":"The main exceptions: contingent liabilities and deferred taxes — IAS 37 and IFRIC 21 take precedence over the Conceptual Framework","LX.IFRS3.000049":"The other exceptions: indemnification, leases, reacquired rights, shares and more — The indemnification asset: measured like the item indemnified","LX.IFRS3.000050":"The other exceptions: indemnification, leases, reacquired rights, shares and more — The indemnification asset: measured like the item indemnified","LX.IFRS3.000051":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Worked example: a dispute covered by the seller","LX.IFRS3.000052":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Worked example: a dispute covered by the seller","LX.IFRS3.000053":"The other exceptions: indemnification, leases, reacquired rights, shares and more — The indemnification asset: measured like the item indemnified","LX.IFRS3.000054":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Employee benefits: IAS 19","LX.IFRS3.000055":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Worked example: a two-year lease taken over by Orlane","LX.IFRS3.000056":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Worked example: a franchise taken back","LX.IFRS3.000057":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Worked example: a replacement award","LX.IFRS3.000058":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Assets held for sale and insurance contracts","LX.IFRS3.000059":"The non-controlling interest: two methods, two goodwill amounts — The rule: two possible bases, one choice per transaction","LX.IFRS3.000060":"The non-controlling interest: two methods, two goodwill amounts — Worked example: the same combination, two goodwill amounts","LX.IFRS3.000061":"The non-controlling interest: two methods, two goodwill amounts — Worked example: the same combination, two goodwill amounts","LX.IFRS3.000062":"The non-controlling interest: two methods, two goodwill amounts — The effect of the choice on goodwill and equity","LX.IFRS3.000063":"The non-controlling interest: two methods, two goodwill amounts — Entry: the combination with a non-controlling interest","LX.IFRS3.000064":"The non-controlling interest: two methods, two goodwill amounts — The rule: two possible bases, one choice per transaction","LX.IFRS3.000065":"The non-controlling interest: two methods, two goodwill amounts — The rule: two possible bases, one choice per transaction","LX.IFRS3.000066":"The non-controlling interest: two methods, two goodwill amounts — The components of the non-controlling interest","LX.IFRS3.000067":"Goodwill: a formula and a purchase price allocation table — The goodwill formula","LX.IFRS3.000068":"Goodwill: a formula and a purchase price allocation table — Worked example: goodwill with a non-controlling interest","LX.IFRS3.000069":"Goodwill: a formula and a purchase price allocation table — The purchase price allocation table","LX.IFRS3.000070":"Goodwill: a formula and a purchase price allocation table — Worked example: a full allocation","LX.IFRS3.000071":"Goodwill: a formula and a purchase price allocation table — The purchase price allocation table","LX.IFRS3.000072":"Goodwill: a formula and a purchase price allocation table — The purchase price allocation table","LX.IFRS3.000073":"Goodwill: a formula and a purchase price allocation table — Worked example: a full allocation","LX.IFRS3.000074":"Goodwill: a formula and a purchase price allocation table — Worked example: the gross-up of partial goodwill","LX.IFRS3.000075":"Goodwill: a formula and a purchase price allocation table — Link to IAS 36: allocating goodwill to cash-generating units","LX.IFRS3.000076":"Bargain purchase: reassess before recognising a gain — The bargain purchase gain","LX.IFRS3.000077":"Bargain purchase: reassess before recognising a gain — Reassessment: checking before celebrating","LX.IFRS3.000078":"Bargain purchase: reassess before recognising a gain — Worked example: the reassessment reduces the gain","LX.IFRS3.000079":"Bargain purchase: reassess before recognising a gain — The bargain purchase gain","LX.IFRS3.000080":"Bargain purchase: reassess before recognising a gain — Reassessment: checking before celebrating","LX.IFRS3.000081":"Bargain purchase: reassess before recognising a gain — Reassessment: checking before celebrating","LX.IFRS3.000082":"The consideration transferred and acquisition-related costs — Understand: what the acquirer really gives","LX.IFRS3.000083":"The consideration transferred and acquisition-related costs — Acquisition-related costs: expensed, outside the consideration","LX.IFRS3.000084":"The consideration transferred and acquisition-related costs — Worked example: cash, shares and a deferred payment","LX.IFRS3.000085":"The consideration transferred and acquisition-related costs — Acquisition-related costs: expensed, outside the consideration","LX.IFRS3.000086":"The consideration transferred and acquisition-related costs — Entry: Garnel's acquisition costs","LX.IFRS3.000087":"The consideration transferred and acquisition-related costs — Acquisition-related costs: expensed, outside the consideration","LX.IFRS3.000088":"The consideration transferred and acquisition-related costs — Acquisition-related costs: expensed, outside the consideration","LX.IFRS3.000089":"Contingent consideration: at acquisition, classification and subsequent measurement — Understand: an extra price if the business keeps its promises","LX.IFRS3.000090":"Contingent consideration: at acquisition, classification and subsequent measurement — After the acquisition date: remeasure the liability, freeze equity","LX.IFRS3.000091":"Contingent consideration: at acquisition, classification and subsequent measurement — Worked example: from three scenarios to a fair value","LX.IFRS3.000092":"Contingent consideration: at acquisition, classification and subsequent measurement — Worked example: remeasurement then settlement","LX.IFRS3.000093":"Contingent consideration: at acquisition, classification and subsequent measurement — Worked example: remeasurement then settlement","LX.IFRS3.000094":"Contingent consideration: at acquisition, classification and subsequent measurement — Classification: liability or equity instrument","LX.IFRS3.000095":"Contingent consideration: at acquisition, classification and subsequent measurement — Link to IFRS 9: a financial liability at fair value through profit or loss","LX.IFRS3.000096":"Contingent consideration: at acquisition, classification and subsequent measurement — After the acquisition date: remeasure the liability, freeze equity","LX.IFRS3.000097":"A step acquisition: the previously held interest is remeasured — Understand: from minority shareholder to owner","LX.IFRS3.000098":"A step acquisition: the previously held interest is remeasured — Worked example: from 20% to 60%","LX.IFRS3.000099":"A step acquisition: the previously held interest is remeasured — Worked example: from 20% to 60%","LX.IFRS3.000100":"A step acquisition: the previously held interest is remeasured — Worked example: from 20% to 60%","LX.IFRS3.000101":"A step acquisition: the previously held interest is remeasured — Reclassifying other comprehensive income","LX.IFRS3.000102":"A step acquisition: the previously held interest is remeasured — Reclassifying other comprehensive income","LX.IFRS3.000103":"A step acquisition: the previously held interest is remeasured — Understand: from minority shareholder to owner","LX.IFRS3.000104":"The measurement period: provisional amounts and adjustments — Understand: the inventory is not always ready at the reporting date","LX.IFRS3.000105":"The measurement period: provisional amounts and adjustments — Adjustments: retrospective, against goodwill","LX.IFRS3.000106":"The measurement period: provisional amounts and adjustments — Worked example: an appraisal received in February","LX.IFRS3.000107":"The measurement period: provisional amounts and adjustments — Worked example: an appraisal received in February","LX.IFRS3.000108":"The measurement period: provisional amounts and adjustments — Adjustments: retrospective, against goodwill","LX.IFRS3.000109":"The measurement period: provisional amounts and adjustments — Adjustments: retrospective, against goodwill","LX.IFRS3.000110":"The measurement period: provisional amounts and adjustments — After the measurement period: error correction only","LX.IFRS3.000111":"What is part of the combination: separate transactions — Understand: a sale contract contains more than the sale","LX.IFRS3.000112":"What is part of the combination: separate transactions — The test: in whose interest?","LX.IFRS3.000113":"What is part of the combination: separate transactions — The test: in whose interest?","LX.IFRS3.000114":"What is part of the combination: separate transactions — Worked example: a consulting contract inside the price","LX.IFRS3.000115":"What is part of the combination: separate transactions — Worked example: a consulting contract inside the price","LX.IFRS3.000116":"What is part of the combination: separate transactions — Settlement of a pre-existing relationship","LX.IFRS3.000117":"What is part of the combination: separate transactions — Settlement of a pre-existing relationship","LX.IFRS3.000118":"What is part of the combination: separate transactions — Contingent payments to former owners who become employees","LX.IFRS3.000119":"What is part of the combination: separate transactions — Professional judgement: sorting the payments in a sale contract","LX.IFRS3.000120":"Disclosures about business combinations, and the 2024 proposal — Meeting the objective: the information specified by the standard","LX.IFRS3.000121":"Disclosures about business combinations, and the 2024 proposal — Understand: showing readers what the combination changed","LX.IFRS3.000122":"Disclosures about business combinations, and the 2024 proposal — Meeting the objective: the information specified by the standard","LX.IFRS3.000123":"Disclosures about business combinations, and the 2024 proposal — Main reasons and pro forma information","LX.IFRS3.000124":"Disclosures about business combinations, and the 2024 proposal — Main reasons and pro forma information","LX.IFRS3.000125":"Disclosures about business combinations, and the 2024 proposal — Disclosures about the year's adjustments","LX.IFRS3.000126":"Disclosures about business combinations, and the 2024 proposal — The 2024 exposure draft: a proposal, not a standard","LX.IFRS3.000127":"Disclosures about business combinations, and the 2024 proposal — Professional judgement: preparing the notes for a combination","QST.IFRS3.000001":"A business combination or a simple purchase of assets? — The rule: three excluded transactions","QST.IFRS3.000002":"A business combination or a simple purchase of assets? — The rule: three excluded transactions","QST.IFRS3.000003":"A business combination or a simple purchase of assets? — The rule: three excluded transactions","QST.IFRS3.000004":"A business combination or a simple purchase of assets? — Common control: the same party before and after","QST.IFRS3.000005":"A business combination or a simple purchase of assets? — Common control: the same party before and after","QST.IFRS3.000006":"A business combination or a simple purchase of assets? — The formation of a joint arrangement","QST.IFRS3.000007":"A business combination or a simple purchase of assets? — Asset acquisition: no business, no goodwill","QST.IFRS3.000008":"A business combination or a simple purchase of assets? — Asset acquisition: no business, no goodwill","QST.IFRS3.000009":"A business combination or a simple purchase of assets? — Asset acquisition: no business, no goodwill","QST.IFRS3.000010":"What is a business? Inputs, processes and outputs — The rule: spotting inputs and processes","QST.IFRS3.000011":"What is a business? Inputs, processes and outputs — The rule: spotting inputs and processes","QST.IFRS3.000012":"What is a business? Inputs, processes and outputs — The rule: spotting inputs and processes","QST.IFRS3.000013":"What is a business? Inputs, processes and outputs — The rule: spotting inputs and processes","QST.IFRS3.000014":"What is a business? Inputs, processes and outputs — The rule: spotting inputs and processes","QST.IFRS3.000016":"A business combination or a simple purchase of assets? — Asset acquisition: no business, no goodwill","QST.IFRS3.000017":"A business combination or a simple purchase of assets? — Asset acquisition: no business, no goodwill","QST.IFRS3.000018":"The acquirer and the acquisition date — The rule: control designates the acquirer","QST.IFRS3.000019":"The acquirer and the acquisition date — The rule: control designates the acquirer","QST.IFRS3.000020":"The acquirer and the acquisition date — The rule: control designates the acquirer","QST.IFRS3.000021":"The acquirer and the acquisition date — Indicators when control does not settle the matter","QST.IFRS3.000023":"The acquirer and the acquisition date — The acquisition date: the day control passes","QST.IFRS3.000024":"The acquirer and the acquisition date — The acquisition date: the day control passes","QST.IFRS3.000025":"The acquirer and the acquisition date — The acquisition date: the day control passes","QST.IFRS3.000026":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000027":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000028":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000029":"Recognising the items acquired, separately from goodwill — Classifying and designating at the acquisition date","QST.IFRS3.000030":"Recognising the items acquired, separately from goodwill — Classifying and designating at the acquisition date","QST.IFRS3.000031":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000033":"Measuring at fair value: identifiable net assets — The rule: fair value at the acquisition date, except for exceptions","QST.IFRS3.000034":"Measuring at fair value: identifiable net assets — The rule: fair value at the acquisition date, except for exceptions","QST.IFRS3.000036":"The main exceptions: contingent liabilities and deferred taxes — Contingent liabilities: recognised with no probability test","QST.IFRS3.000037":"The main exceptions: contingent liabilities and deferred taxes — Contingent liabilities: recognised with no probability test","QST.IFRS3.000039":"The main exceptions: contingent liabilities and deferred taxes — IAS 37 and IFRIC 21 take precedence over the Conceptual Framework","QST.IFRS3.000040":"The main exceptions: contingent liabilities and deferred taxes — Deferred tax in a business combination","QST.IFRS3.000042":"The main exceptions: contingent liabilities and deferred taxes — Deferred tax in a business combination","QST.IFRS3.000044":"The other exceptions: indemnification, leases, reacquired rights, shares and more — The indemnification asset: measured like the item indemnified","QST.IFRS3.000045":"The other exceptions: indemnification, leases, reacquired rights, shares and more — The indemnification asset: measured like the item indemnified","QST.IFRS3.000046":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000047":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Reacquired rights: the remaining contractual term","QST.IFRS3.000048":"The other exceptions: indemnification, leases, reacquired rights, shares and more — Replacement share-based awards","QST.IFRS3.000049":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000050":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000051":"The non-controlling interest: two methods, two goodwill amounts — The rule: two possible bases, one choice per transaction","QST.IFRS3.000052":"The non-controlling interest: two methods, two goodwill amounts — The rule: two possible bases, one choice per transaction","QST.IFRS3.000054":"The non-controlling interest: two methods, two goodwill amounts — The components of the non-controlling interest","QST.IFRS3.000055":"The non-controlling interest: two methods, two goodwill amounts — The effect of the choice on goodwill and equity","QST.IFRS3.000056":"The non-controlling interest: two methods, two goodwill amounts — The effect of the choice on goodwill and equity","QST.IFRS3.000058":"Goodwill: a formula and a purchase price allocation table — The goodwill formula","QST.IFRS3.000059":"Goodwill: a formula and a purchase price allocation table — The goodwill formula","QST.IFRS3.000061":"Goodwill: a formula and a purchase price allocation table — The purchase price allocation table","QST.IFRS3.000062":"Goodwill: a formula and a purchase price allocation table — The purchase price allocation table","QST.IFRS3.000064":"Bargain purchase: reassess before recognising a gain — Reassessment: checking before celebrating","QST.IFRS3.000065":"Bargain purchase: reassess before recognising a gain — Reassessment: checking before celebrating","QST.IFRS3.000067":"Bargain purchase: reassess before recognising a gain — Reassessment: checking before celebrating","QST.IFRS3.000068":"Bargain purchase: reassess before recognising a gain — Reassessment: checking before celebrating","QST.IFRS3.000070":"The consideration transferred and acquisition-related costs — Understand: what the acquirer really gives","QST.IFRS3.000071":"The consideration transferred and acquisition-related costs — Acquisition-related costs: expensed, outside the consideration","QST.IFRS3.000073":"The consideration transferred and acquisition-related costs — Understand: what the acquirer really gives","QST.IFRS3.000074":"The consideration transferred and acquisition-related costs — Understand: what the acquirer really gives","QST.IFRS3.000076":"Contingent consideration: at acquisition, classification and subsequent measurement — Classification: liability or equity instrument","QST.IFRS3.000077":"Contingent consideration: at acquisition, classification and subsequent measurement — Classification: liability or equity instrument","QST.IFRS3.000079":"Contingent consideration: at acquisition, classification and subsequent measurement — After the acquisition date: remeasure the liability, freeze equity","QST.IFRS3.000080":"Contingent consideration: at acquisition, classification and subsequent measurement — After the acquisition date: remeasure the liability, freeze equity","QST.IFRS3.000082":"The consideration transferred and acquisition-related costs — Acquisition-related costs: expensed, outside the consideration","QST.IFRS3.000084":"The consideration transferred and acquisition-related costs — Acquisition-related costs: expensed, outside the consideration","QST.IFRS3.000085":"Goodwill: a formula and a purchase price allocation table — The goodwill formula","QST.IFRS3.000088":"Goodwill: a formula and a purchase price allocation table — The goodwill formula","QST.IFRS3.000090":"The measurement period: provisional amounts and adjustments — After the measurement period: error correction only","QST.IFRS3.000091":"The measurement period: provisional amounts and adjustments — After the measurement period: error correction only","QST.IFRS3.000092":"The measurement period: provisional amounts and adjustments — Adjustments: retrospective, against goodwill","QST.IFRS3.000093":"Goodwill: a formula and a purchase price allocation table — The goodwill formula","QST.IFRS3.000096":"The measurement period: provisional amounts and adjustments — After the measurement period: error correction only","QST.IFRS3.000097":"The measurement period: provisional amounts and adjustments — After the measurement period: error correction only","QST.IFRS3.000098":"What is part of the combination: separate transactions — The test: in whose interest?","QST.IFRS3.000099":"What is part of the combination: separate transactions — The test: in whose interest?","QST.IFRS3.000102":"What is part of the combination: separate transactions — The test: in whose interest?","QST.IFRS3.000105":"The acquirer and the acquisition date — The reverse acquisition: the issuer is the acquiree","QST.IFRS3.000106":"Measuring at fair value: identifiable net assets — After the acquisition date: the applicable IFRS, with four specific rules","QST.IFRS3.000107":"Measuring at fair value: identifiable net assets — After the acquisition date: the applicable IFRS, with four specific rules","QST.IFRS3.000108":"Disclosures about business combinations, and the 2024 proposal — Meeting the objective: the information specified by the standard","QST.IFRS3.000110":"Disclosures about business combinations, and the 2024 proposal — Main reasons and pro forma information","QST.IFRS3.000111":"Disclosures about business combinations, and the 2024 proposal — Meeting the objective: the information specified by the standard","QST.IFRS3.000112":"Disclosures about business combinations, and the 2024 proposal — Main reasons and pro forma information","QST.IFRS3.000113":"The acquirer and the acquisition date — Link to IFRS 10: after control is obtained","QST.IFRS3.000115":"The non-controlling interest: two methods, two goodwill amounts — The rule: two possible bases, one choice per transaction","QST.IFRS3.000116":"Goodwill: a formula and a purchase price allocation table — The goodwill formula","QST.IFRS3.000118":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000120":"A business combination or a simple purchase of assets? — The rule: three excluded transactions","QST.IFRS3.000121":"Recognising the items acquired, separately from goodwill — The rule: three conditions to be recognised","QST.IFRS3.000122":"Goodwill: a formula and a purchase price allocation table — The goodwill formula","QST.IFRS3.000123":"What is a business? Inputs, processes and outputs — The minimum condition: an input and a substantive process"}}