Topic: Business Acquisitions JB Company recently acquired 100% of Sampson Company for $150,000 cash. Both companies are located outside of the United States and JB needs to prepare consolidated financial statements. JB provided the following information regarding the Sampsons account values at acquisition: Account Cost basis Fair value basis Accounts receivable (net) $25,000 $20,000 Building $150,000 $200,000 Accounts payable $18,000 $18,000 Bonds payable $100,000 $125,000 Required: Utilize eIFRS to find authoritative guidance regarding business acquisitions and the valuation of items acquired. Prepare the acquisition journal entry based upon your research. Prepare a report to be presented to JB Companys management with specific authoritative literature references.

Account Cost Basis Fair Value Basis

Accounts receivable (net) Building $25,000 $20,000 Building $150,000 $200,000 Accounts payable $18,000 $18,000

Bonds payable $100000. $125000

Required: Utilize eIFRS to find authoritative guidance regarding business acquisitions and the valuation of items acquired. Prepare the acquisition journal entry based upon your research. Prepare a report to be presented to JB Companys management with specific authoritative literature references.