Document ID: chunk:federal_register_of_legislation:F2023C00389:body:0:p10
Version: federal_register_of_legislation:F2023C00389
Segment Type: other
Provision Reference: 
Character Range: 25027–27974

and a separate valuation allowance is not necessary (paragraph B41 provides related application guidance).
28 In some circumstances, the indemnification may relate to an asset or a liability that is an exception to the recognition or measurement principles. For example, an indemnification may relate to a contingent liability that is not recognised at the acquisition date because its fair value is not reliably measurable at that date. Alternatively, an indemnification may relate to an asset or a liability, for example, one that results from an employee benefit, that is measured on a basis other than acquisition-date fair value. In those circumstances, the indemnification asset shall be recognised and measured using assumptions consistent with those used to measure the indemnified item, subject to management's assessment of the collectibility of the indemnification asset and any contractual limitations on the indemnified amount. Paragraph 57 provides guidance on the subsequent accounting for an indemnification asset.

Leases in which the acquiree is the lessee
28A The acquirer shall recognise right-of-use assets and lease liabilities for leases identified in accordance with AASB 16 in which the acquiree is the lessee. The acquirer is not required to recognise right-of-use assets and lease liabilities for:
(a) leases for which the lease term (as defined in AASB 16) ends within 12 months of the acquisition date; or
(b) leases for which the underlying asset is of low value (as described in paragraphs B3–B8 of AASB 16).
28B The acquirer shall measure the lease liability at the present value of the remaining lease payments (as defined in AASB 16) as if the acquired lease were a new lease at the acquisition date. The acquirer shall measure the right-of-use asset at the same amount as the lease liability, adjusted to reflect favourable or unfavourable terms of the lease when compared with market terms.

Exceptions to the measurement principle

Reacquired rights
29 The acquirer shall measure the value of a reacquired right recognised as an intangible asset on the basis of the remaining contractual term of the related contract regardless of whether market participants would consider potential contractual renewals when measuring its fair value. Paragraphs B35 and B36 provide related application guidance.

Share-based payment transactions
30 The acquirer shall measure a liability or an equity instrument related to share-based payment transactions of the acquiree or the replacement of an acquiree's share-based payment transactions with share-based payment transactions of the acquirer in accordance with the method in AASB 2 Share-based Payment at the acquisition date. (This Standard refers to the result of that method as the 'market-based measure' of the share-based payment transaction.)

Assets held for sale
31 The acquirer shall measure an acquired non-current asset (or disposal group) that is classified as