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On 1july 2017 Soda co had an internally generated customer list which was valued at $35m by an independent team of expert . At 1july 2017 Soda co was also in negotiation with potential customer if the negotiations are successful the new customer will sign the contract on 15july 2017 and the value of the total customer base would be worth $45m
What amount would be recognised for the customer list in the consolidated statement of financial position as at 1july 2017 ?
Option A $0m
Option B $35mAccording to me internally generated is not taken into consideration under IAS 38 but bpp answer is option B why sir ??
Thank uIn Soda’s records that internally-generated customer list would not be recognised
But, for the purposes of goodwill on acquisition calculations (and the subsequent consolidated financial statements), the fair value of the acquiree must be taken into account and that includes the previously non-recognised values of internally generated intangible assets
OK?
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