Happy Ltd is doing a business combination with Smiley Ltd. While reviewing the acquisition documents, Happy Ltd is aware of the following 2 issues: 1. Smiley Ltd has an internally developed brand name which is not recorded in the books of Smiley Ltd. The brand name is popular in the local market and Smiley Ltd claims that it can be sold for $10m in the brand name market. 2. A contingent liability involves a claim of $1m by a customer for breach of sales contract. A court case is ongoing. Smiley Ltd disputes the claims and discloses this incident as a contingent liability. Required: Based on the above situation, how should Happy Ltd account for the above transactions? Explain how the recognition and measurement of the above items differ from the accounting treatments of the same items in a non-business combination situation.