Steps | Tests | Questions |
Step 1 | Consider whether to apply the concentration test | Does the entity want to apply the concentration test? |
Step 2 | Consider what assets have been acquired | Has a single identifiable asset or a group of similar identifiable assets been acquired? |
Step 3 | Consider how the fair value of gross assets acquired is concentrated | Is substantially all of the fair value of the gross assets acquired concentrated in a single identifiable asset or a group of similar identifiable assets? |
Step 4 | Consider whether the acquired set of activities and assets has outputs | Does the acquired set of activities and assets have outputs? |
Step 5 | Consider if the acquired process is substantive | When the acquired process is considered substantive? |