Worked examples.
Two engagements followed through Alit, from the source documents to the memo: a step acquisition under IFRS 3, and a customer contract read against its side letter under IFRS 15.
IFRS 3 · IFRS 13 · IAS 36 · IAS 12
A step acquisition under IFRS 3
Aurelia takes Vela from 15% to 80%. The earlier stake is remeasured, the non-controlling interest is measured at fair value, a founder payment is separated from the price, and goodwill comes to £23.55m.
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IFRS 15 · IFRS 16 · IFRS 9 · IAS 37
A contract read against its side letter
The agreement says five years with no way out. A side letter signed the same day allows an exit after eighteen months, and fixed consideration falls from £9.6m to £3.3m.
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