On 11 March 2024, Avator Ltd acquired all shares of Brisbane Ltd by issuing 2...
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On March Avator Ltd acquired all shares of Brisbane Ltd by issuing millionordinary shares market value $ per share and paid $ cash immediately to theformer shareholders of Brisbane Ltd and will also pay additional cash of $ twoyears after acquisition.Avator Ltd also agreed to assume a liability of $ incurred by Brisbane LtdIn the purchase agreement, if Brisbane Ltds profits exceed $ for each of thethree years after the acquisition, an additional payment of $ is to be made to the former shareholders of Brisbane Ltd Brisbane Ltd has historically made the profit between $ and $The discount rate used by Avator Ltd is Besides, Avator Ltd paid the following expenses in relation to the acquisition:Legal consultancy fee for acquisition: $Fee for valuation of net assets of Brisbane Ltd: $ Broker fee for issuing ordinary shares by Avator Ltd: $Required: All figures should be rounded to zero decimal place.a Based on the IFRS compute the fair value of total amount of consideration onthe acquisition date. Note: Please show each part of the total consideration separately.b Prepare journal entry for the above mentioned acquisition related expenses.
On March Avator Ltd acquired all shares of Brisbane Ltd by issuing millionordinary shares market value $ per share and paid $ cash immediately to theformer shareholders of Brisbane Ltd and will also pay additional cash of $ twoyears after acquisition.Avator Ltd also agreed to assume a liability of $ incurred by Brisbane LtdIn the purchase agreement, if Brisbane Ltds profits exceed $ for each of thethree years after the acquisition, an additional payment of $ is to be made to the former shareholders of Brisbane Ltd Brisbane Ltd has historically made the profit between $ and $The discount rate used by Avator Ltd is Besides, Avator Ltd paid the following expenses in relation to the acquisition:Legal consultancy fee for acquisition: $Fee for valuation of net assets of Brisbane Ltd: $ Broker fee for issuing ordinary shares by Avator Ltd: $Required: All figures should be rounded to zero decimal place.a Based on the IFRS compute the fair value of total amount of consideration onthe acquisition date. Note: Please show each part of the total consideration separately.b Prepare journal entry for the above mentioned acquisition related expenses.
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