Question: The following are independent events 1 Ollexco acquires RAH Ltd

The following are independent events.
1. Ollexco acquires RAH Ltd. in a business combination on December 31, 2013. RAH has a five year agreement to supply goods to Bourassa Corp. Both RAH and Ollexco believe that Bourassa will renew the agreement at the end of the current contract. The agreement is not separable.
2. Divestex Ltd. acquires Total Sporting Goods in a business combination on December 31, 2013. Total Sporting Goods manufactures goods in two distinct lines of business: sporting goods and electronics. Wearhuis Co. purchases both sporting goods and electronics from Total Sporting Goods. Total Sporting Goods has a contract with Wearhuis to be its exclusive provider of sporting goods but has no contract for the supply of electronics to Wearhuis. Both Total Sporting Goods and Divestex believe that only one overall customer relationship exists between Total Sporting Goods and Wearhuis.
3. Jiwaji Corp. acquires TransOntario Ltd. in a business combination on December 31, 2013. TransOntario does business with its customers solely through purchase and sales orders. At December 31, 2013, TransOntario has a backlog of customer purchase orders from 60% of its customers, all of whom are recurring customers. The other
40% of TransOntario’s customers are also recurring customers. However, as of December 31, 2013, TransOntario has no open purchase orders or other contracts with those customers.
4. Mountainex acquires Financeco, an insurer, in a business combination on December 31, 2013. Financeco has a portfolio of one-year motor insurance contracts that are cancellable by policyholders.
Discuss the proper reporting for each of the independent situations above.

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