of P112,000,000. At the acquisition date, the carrying amount of Manila Pen's net assets was P100,000,000 and their fair value was P120,000,000. How should the difference between the consideration transferred and the net assets acquired be presented in Manila Hotel Corp. financial statements, according to IFRS 3, Business Combination?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Manila Hotel Corp. acquired 100% of the Manila Peninsula Inc. for a consideration transferred
of P112,000,000. At the acquisition date, the carrying amount of Manila Pen's net assets was
P100,000,000 and their fair value was P120,000,000. How should the difference between the
consideration transferred and the net assets acquired be presented in Manila Hotel Corp. financial
statements, according to IFRS 3, Business Combination?
Transcribed Image Text:The Manila Hotel Corp. acquired 100% of the Manila Peninsula Inc. for a consideration transferred of P112,000,000. At the acquisition date, the carrying amount of Manila Pen's net assets was P100,000,000 and their fair value was P120,000,000. How should the difference between the consideration transferred and the net assets acquired be presented in Manila Hotel Corp. financial statements, according to IFRS 3, Business Combination?
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