Pivoine SA acquires 100% of Roseau SA by paying 1,100,000 in cash and issuing shares whose fair value at the acquisition date is 1,250,000. Roseau's identifiable assets have a fair value of 2,900,000 and its liabilities assumed 700,000. Case convention: the entry is made at business combination level, the shares issued being credited to share capital and premium. Record the acquisition entry.
- Fair value of identifiable assets
- 2,900,000
- Fair value of liabilities assumed
- 700,000
- Cash paid
- 1,100,000
- Fair value of the shares issued
- 1,250,000