2017-04-29 13:26:48

16. The earnings of a dissolved company in the year prior to acquisition should be declared separately by the surviving company on behalf of the dissolved company rather than combined and declared with that of the surviving company. 17. In an acquisition where stock is used as consideration, the share values of the surviving company and the dissolved company are to be determined according to the Ministry of Finance Official Letters numbered 09804902120 published on November 30th, 2009 and 10304030470 published on December 1st, 2014. If the fair value of the net identifiable assets exceeds the cost of the acquisition, the gain from the bargain purchase recognized according to International Financial Reporting Standard 3-Business Combinations should be divided evenly and declared as business income over the next 5 years starting from the year in which the acquisition date falls.