Date Acquisition

[Esam Rosado]

IFRS3 defines the acquisition date as the date the acquirer obtains control of the acquiree. In a combination effected by a sale and purchase agreement, this is generally the specified closing or completion date (the date when the consideration is transferred and acquiree shares or underlying net assets are acquired).

The acquisition date is often readily apparent from the structure of the business combination and the terms of the sale and purchase agreement (if applicable) but this is not always the case. Complications can arise because of the many ways, both contractual and non-contractual, that business combinations can be put together.

The period between the start of negotiations and final settlement of all aspects of a combination can be protracted. Applicable corporate laws, shareholder approval requirements, competition rules and stock market regulations also vary and may affect the analysis and the date at which control is transferred to the acquirer.

Consider whether the provisional effective date actually changes the acquisition date. In practice, many of these types of provisions are simply mechanisms to adjust the price but may not affect the date when control is obtained.

An agreement that artificially backdates the date of acquisition cannot justify the acquisition date (from an accounting perspective) being the earlier date. In other words, it cannot be subsequently decided that control took place at a date when the acquirer and the acquiree were unlikely having any relationship. Control cannot be decided afterwards on the basis of a contractual term that artificially places the acquisition date before the terms of the contract provided the acquirer with the benefits associated of returns from that date.

For example, a target company operates in a market and jurisdiction where the acquirer is already a significant competitor. Where this transaction requires the approval of the competition authority in that jurisdiction, it would be difficult to conclude this regulatory approval is just a formality. Therefore, until the approval is obtained, control cannot have been transferred to the acquirer.

Consider, for example, when an investee repurchases own shares held by other investors resulting in an existing shareholder becoming a majority shareholder. In this case, the starting point is to identify the date when the shareholder's proportionate voting rights amounted to a controlling interest.

We hope you find the information in this article helpful in giving you some insight into IFRS 3. If you would like to discuss any of the points raised, please speak to your usual Grant Thornton contact or your local member firm.

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Your brokerage statements should include a summary of your transactions, grouped by sales category, for example, "Box A short-term covered" or "Box D long-term covered." You'll enter the summary info instead of each individual transaction.

Thank you @Cynthiad66 ; that was the information I needed. I had already started manually adjusting information on my 1099-B entries before I saw this post, so I had to delete the old entries (after I compared the new info to the old info). Then I had to delete my state return that I had started in order to have the new info show up and be able to enter the correct dates. I also had to upload a PDF copy of my 1099-B provided by my investment firm.

It would be great if the import situation could be improved for next year's filing (if not before). The process of figuring out what to do (not to mention how to ask the questions in TurboTax) took a very long time. It would be great if this information could be clearer for the folks working their way through their filing, especially if the wait until the last minute.

E.g. my company buys a new printer August 25, but receives the invoice October 15. When creating the fixed asset I want to enter the actual date for when the printer was acquired, but it seems that no matter what I do the acquisition date will be overwritten by the G/L acquisition date.

Then make sure you DO NOT check that option and you can do this. The FA Posting Date will be that of the Customer Acquisition and the Sale Invoice will be the GL Posting Date. The FA Posting Date will drive the Depreciation start date.

It might be a bit of nitpicking, but we would like the information about the fixed assets to be correct, even tho the financial impact is due to the depreciation starting date and not acquisition date.

We offer our customers products on leasing deals and they often get the products on a trial run for one to three months before they decide if they want it or not. Then when the customer decides to accept the deal we send an internal invoice from the sales department to the finance department and register the products as a fixed asset.

We have an asset with the capitalization date 01.06.2011 and the First acquisition date as 29.02.2012. Now the depreciation is being calculated from 29.02.2012 and not from the capitalization date 01.06.2011. Is this correct?

In your case since both FAD and depreciation start date are same I am assuming that the CPD was manually updated after capitalizing the asset on 29-2-2012. It's correct, that depreciation starts based on CPD but if CPD is manually updated after capitalizing the asset then the depreciation date should also be updated.

In most of the cases where capitalization date is not entered manually system populates these two fields ( Capitalized on and First acquisition on ) from first acquisition transaction posting date.

Now coming to your point I guess user has manually entered Capitalization Date while creating master data and acquisition transaction posted later on dates which is different to Capitalization Date, and hence difference in these two dates.

I would like to suggest you please check in your depreciation key whether the option "depreciation to the day" has been selected. In that case you cannot change that, your system will calculate depreciation from the acquisition date only.

yes, this is correct. In the year of first acqusition, the system will calculate depreciaiton from the dep. start date in case of acqusition transaction type (like 100), in case of transfer transaction type (like 300) the system takes into account the asset value date and the period control for transfer.

When using one of the ESRI streamed in aerial layers from ArcGIS Online, how does one determine what the acquisition date would be for any particular area of interest? This is often important when using imagery zoomed in to local or regional levels.

Adding the World Imagery layer through the Living Atlas produces the ability to get metadata pop up boxes, but only if added as a layer to your online map? Adding the same layer as a basemap, does not result in the metadata pop up boxes. So it seems a little clunky to have to add the same imagery layer to your webmap after already having the same layer as your basemap, in order to get the metadata functionality. Is this the way it is supposed to work?

I see that the Citation layer can be added as a separate layer and that would have some usefulness, at times. I think you have missed my main question a little. If you add the World Imagery service as a basemap, then you do not get the metadata functionality, correct?

Adding the Citation layer in 3 times and resetting the scales and filters will no doubt work, but seems easier to just add the World Imagery as a map layer. I just made a map using the plain dark canvas as the basemap and the World Imagery as the last map layer. Seems to work fine like that.

Yep you're correct, the metadata functionality is not available when set as the basemap of a webmap. Potentially others would have the same requirement as you, so it never hurts to add a request through the -ideas site.

I think it would be more useful to everyone if the acquisition date was shown by default, in addition to the source, in the bottom-right corner of the imagery basemap as in "the one that shall not be named" mapping system (see below):

The original source of acquisition is recorded in field 561 (Ownership and Custodial History). Field 541 is repeated when recording the acquisition of additional material in a collection. An additional field 541 is made for each addition.

Your proceeds of dispositionmeans the selling price of the property disposed of. The proceeds ofdisposition may also be compensation received for property that wasexpropriated, destroyed, damaged, or stolen.

The Adjusted Cost Base is usuallyequal to the acquisition cost of the property, plus the expenses incurred to acquirethe property and the cost of any additions to it. Examples of expenses incurredto acquire property include legal fees, surveyor's fees, and assessment orbrokerage fees.

Theseare expenses that you incurred to sell a capital property. You can deductoutlays and expenses from your proceeds of disposition when calculating yourcapital gain or capital loss. You cannot reduce your other income by claiming adeduction for these outlays and expenses. These types of expenses includefixing-up expenses, finder fees, commissions, broker fees, surveyor fees, legalfees, transfer taxes, and advertising costs.

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