Using the optional concentration test to determine whether the acquired set of activities and assets is not a business.

a) An entity (Entity A) purchases another legal entity (Entity SolarCell). Entity SolarCell carries out research and development activities on several solar projects that it is involved in and are currently in progress. It has scientists who possess the skills knowledge and experience needed to perform these activities. It also has tangible assets which include lab equipment and a factory and laboratory to perform such activities. Currently, the product is not ready to be marketed and no sales have been made. All of the assets acquired are deemed to individually have a similar
fair value.

b) An entity (Entity B) purchases from another entity (Entity S) the worldwide rights to Product 123, including all related intellectual property. In addition, Entity B also purchases all the existing customer contracts and customer relationships, inventories of finished goods, customer incentive programs, raw material supply contracts, specialized equipment specific to manufacturing Product 123, and documented manufacturing processes and protocols to produce Product 123. Entity B does not acquire any employees, other assets, other processes, or other activities. None of the identifiable assets purchased has a fair value that comprises substantially all of the fair value of the gross assets acquired.