Measure and recognize consideration transferred

In acquiring a business the consideration transferred has to be recognised and measured.

The complete process is described here:

Establish the fair value of the consideration given in the acquisition as given in the below equation:

The consideration transferred by the acquirer for the business does not include acquisition-related costs or other amounts transferred in transactions that are not part of the business combination.

Examples of consideration transferred include:
Cash, other assets, contingent consideration, a subsidiary or a business of the acquirer transferred to the seller, common or preferred equity instruments, options, warrants, and member interests of mutual entities

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