Hi team!

We have a case of JDSU stock-for-stock acquisition of SDL. At the announcement date 10.07.2000, the shares of JDSU traded at 111.13$ per share and they issued 333.8 million of shares to acquire SDL. At the completion date (acquisition date), 13.02.2001, the stock of JDSU was worth 40$. The question is, how, according to IFRS 3, would you value the purchase cost ? Here is the transaction breakdown and PPA breakdown. thank you !!!!

Value of securities issued 37,091.9 Assumption of SDL options 4,056.4 Cash consideration 0.2 Total consideration 41,148.5 Estimated transaction costs 44.6 Total purchase cost $ 41,193.1 The transaction was accounted for using the "purchase method." The notes to the financial statements indicated that it was company policy to amortize goodwill on a straight-line basis over five years. The allocation of the total purchase cost of SDL is as follows (in millions): Tangible net assets 617.4 Intangible assets acquired: Existing technology 455.4 Core technology 214.2 Trademarks and tradename 46.0 Assembled workforce 47.7 Deferred compensation 203.7 Goodwill 39,228.0 In-process research and development 380.7 Total purchase price $41,193.1