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?