CERTYNEX IFRS ACADEMY

In a business combination, the acquirer takes over a brand owned by the acquiree. How is the cost of this brand determined for the acquirer?

Its carrying amount in the acquiree's financial statements at the acquisition date

The cumulative expenditure incurred by the acquiree to create and promote the brand

A share of the price paid, proportionate to the revenue generated under the brand

Its fair value at the acquisition date