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Additional information: 1 . Unity Ltd acquired 8 0 0 0 0 ordinary shares in Onetime Ltd on 1 March 2 0 2 4 for

Additional information:
1.Unity Ltd acquired 80000 ordinary shares in Onetime Ltd on 1 March 2024 for R40500000. The acquisition price would be paid on 28 February 2025. Onetime Ltd manufactures exclusive furniture pieces.
2.The carrying amounts of all of the assets and liabilities of Onetime Ltd were equal to their fair values except for the following:
Inventory 2250000
Property, plant and equipment 11250000
Land 25000000
3.Onetime Ltd did not recognise a contingent liability of R2000000 on 29 February 2024. This is of a capital nature and hence is not an allowable tax deduction. This amount meets the recognition criteria of IFRS 3.
4.Onetime Ltd did not recognise an intangible asset with a fair value of R3750000 at the acquisition date.
5.An appropriate discount rate is 10% per annum.
6.The fair value of Onetime Ltd shares was R26.25 on 1 March 2024
7.Non-controlling interest is measured at fair value on the acquisition date.
8. Non-controlling interest is measured at their share of net identifiable assets
9. Investments in subsidiaries are accounted for at cost in the separate records of Unity Ltd.
10. The SA normal tax rate is 27% and the effective capital gains tax rate is 21.6%. Land and intangible assets are subject to capital gains tax and all other assets are subject to normal tax
1.Considering the acquisition of the shares of Onetime Ltd above, explain why IFRS 3is applicable.In your explanation, refer to the definition of control in terms of IFRS 10Consolidated Financial Statements, and the definition of a business in terms ofIFRS 3 Business Combinations.
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