09-29-2003, 03:58 AM
Where ever I look at the definition of Net assets it says total assets less total liablities of a entity
IAS has not defined net assets anywhere. So we have to take definition from other places as generally accepted
I agree with you on this totally that for all practical purposes it is an acquisation and should be accounted for as such.
However, I am facing some body who needs to be coninced with something in writing and he is insisting as he has not purchased 100% of assets less liablities of enterprise hence according to generally accepted definition of net assets IAS 22 does not apply its simply a acquisation of fixed assets and take over of liablities relating to those assets
Can you help me convince him
IAS has not defined net assets anywhere. So we have to take definition from other places as generally accepted
I agree with you on this totally that for all practical purposes it is an acquisation and should be accounted for as such.
However, I am facing some body who needs to be coninced with something in writing and he is insisting as he has not purchased 100% of assets less liablities of enterprise hence according to generally accepted definition of net assets IAS 22 does not apply its simply a acquisation of fixed assets and take over of liablities relating to those assets
Can you help me convince him
