Financial Statement Analysis

Acquisition Method (IFRS 3)

Given the info reported in the different HPs, please fill in the empty cells in the third boxes

H1: A buys 100% of SUB and pays 1,000. The Price paid equals the BV of Equity of B and its Fair
Value of Equity (1,000).

BS (SUB) @ BV   BS (A)   BS (A+SUB) Pool  

Cash 320 Cash 120 Cash
Inventory 880 Inventory 780 Inventory
Securities 700 Securities 1000 Securities
PPE 1400 PPE 600 PPE
Intangibles 450 Intangibles 0 Intangibles
Tot Assets 3750 Tot Assets 2500 Tot Assets 5250
Current Debt 300 Current Debt 300 Current Debt
Payables 450 Payables 400 Payables
Provisions 200 Provisions 0 Provisions
LT Debt 1800 LT Debt 1200 LT Debt
Equity 1000 Equity 600 Equity
Tot Liabilities 3750 Tot Liabilities 2500 Tot Liabilities 5250
 Financial Statement Analysis
Acquisition Method (IFRS 3)

H2: A buys 100% of SUB and pays 1500. The difference is due to FV revaluations of PPEs (+300)
and the recognition of a Brand (200)

BS (SUB) @
BV   BS (A)   BS (A+SUB) Pool  
Cash 320 Cash 120 Cash 440
166
Inventory 880 Inventory 780 Inventory 0
          0
150
Securities 700 Securities 0 Securities 700
          0
140 200
PPE 0 PPE 600 PPE 0
Intangibles 450 Intangibles 0 Intangibles 450
          0
375 300 525
Tot Assets 0 Tot Assets 0 Tot Assets 0
           
Current Debt 300 Current Debt 300 Current Debt 600
        0
Payables 450 Payables 400 Payables 850
Provisions 200 Provisions 0 Provisions 200
180 120 300
LT Debt 0 LT Debt 0 LT Debt 0
100 110 110
Equity 0 Equity 0 Equity 0
375 300 575
Tot Liabilities 0 Tot Liabilities 0 Tot Liabilities 0
 Financial Statement Analysis
Acquisition Method (IFRS 3)

H3: A buys 100% of SUB and pays 1700. The difference is due to FV revaluations of PPEs (+300)
and the recognition of a Brand (200)

BS (SUB) @
BV   BS (A)   BS (A+SUB) Pool  
Cash 320 Cash 120 Cash 440
166
Inventory 880 Inventory 780 Inventory 0
          0
170
Securities 700 Securities 0 Securities 700
          0
140 200
PPE 0 PPE 600 PPE 0
Intangibles 450 Intangibles 0 Intangibles 450
          0
375 320 525
Tot Assets 0 Tot Assets 0 Tot Assets 0
           
Current Debt 300 Current Debt 300 Current Debt 600
        0
105
Payables 450 Payables 600 Payables 0
Provisions 200 Provisions 0 Provisions 200
180 120 300
LT Debt 0 LT Debt 0 LT Debt 0
100 110 110
Equity 0 Equity 0 Equity 0
375 320 595
Tot Liabilities 0 Tot Liabilities 0 Tot Liabilities 0