CERTYNEX IFRS ACADEMY

The Ferval group acquires Lumis, which is carrying out an in-process research and development project that meets the definition of an intangible asset. Lumis has never recognised this project as an asset. Which statements are correct for Ferval's consolidated financial statements?

The project is subsumed in goodwill, since it does not appear on Lumis's balance sheet.

The project is recognised separately from goodwill.

The cost of the project is its fair value at the acquisition date.

The cost of the project equals the cumulative expenditure incurred by Lumis.

The absence of the project from Lumis's balance sheet does not prevent its recognition by Ferval.