On 31 December 20X0, AB acquired 100% of CD. At that date, CD had a customer list. This customer list had not been recognised as an intangible asset in CD's statement of financial position. However, the directors of CD estimate that a total of $500,000 had been spent building up this customer list. At the acquisition date, as part of the due diligence exercise, external specialists valued CD's customer list at a fair value of $800,000 although the directors of AB believe that it was really worth closer to $1,000,000. At what amount should AB include this customer list in its consolidated statement of financial position as at 31 December 20X0?

Answer rating: 100% (QA)

In the consolidated statement of financial position of AB as at 31 December 20X0 the customer list a... View the full answer