CERTYNEX IFRS ACADEMY

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?

As an element of the consideration transferred, which remains 5,000,000 and feeds the goodwill calculation.

As an additional 150,000 of goodwill, added to the balance calculated at the acquisition date of Galet.

As a separate intangible asset, recognised at 150,000 and amortised with the other assets acquired.

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.