Alpha purchased all shares of 100 million pounds of Beta. The terms of sale agreement included exchange of 3 shares of alpha for 2 shares of beta. On 1 apr 2012, Market value of alhpha's shares was 20 pounds and beta was 27 pounds. The terms included payment of additional 2.42 pounds per share provided profits of beta exceeds the targeted value which is probable by 85%. Beta had: Net assets of fair 2400 million pounds. Intangibles not recognized in books: customer relationships of 200 million pounds, employee expertise of 80 million pounds, in process R&D of 10 million pounds which didn't meet IFRS conditions. Legal and professional fees were 2.4 million pounds, inluding cost of issue of shares, which were 400,000 pounds. Cost of director's time 200,000 pounds. Estimate the life of goodwill on acquisition . Annual discount rate is 10%.

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