FOREIGN CURRENCY &
GROUP ACCOUNTS
P R E S E N TAT I O N C U R R E N C Y & F U N C T I O N A L C U R R E N C Y
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T R A N S L AT I N G S U B S I D I A R Y F I N A N C I A L S TAT E M E N T S
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T R A N S L AT I N G G O O D W I L L
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H O W T O T R E AT E X C H A N G E D I F F E R E N C E S
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G O O D W I L L T R A N S L AT I O N
G O O D W I L L T R A N S L AT I O N
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EXCHANGE DIFFERENCES ON SFP
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DISPOSALS
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EXAM PRACTICE QUESTION
PA R T- I I
P U R C H A S E C O N S I D E R AT I O N - C O N T I N G E N T &
SHARE BASED
C O N S I D E R AT I O N F O R A C Q U S I T I O N
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Replacement share-based payment schemes
Consideration transferred in exchange for control of a subsidiary could include replacement share-based
payment schemes exchanged for share-based payments schemes held by the subsidiary’s employees.
If the acquirer is obliged to issue replacement share-based payments to employees of the subsidiary in
exchange for their existing schemes, then the fair value of the replacement scheme must be allocated
between:
- purchase consideration, and
- post-acquisition remuneration expense.
The amount allocated as purchase consideration cannot exceed the value of the original share scheme
at the date of acquisition. The amount attributable to post-acquisition service is recognised in
accordance with IFRS 2 Share-based Payments.