We are planning to spin-off a division. A valuation report of an external auditor showed us that our client book has a substant value. Well we are planning to spin-off the division to a NewCo which will be 100% owned by us, so it stays in common control. We are planning to spin it off against the book value, which is the same as the fair value (following a recent impairment). the question is wether it is allowed, after spinning it off to a subsidiary and recognision of the assets and outstanding shares, to recognise also (an extra value) for the intangible assets?
my considerations are:
- you can only recognise intangible assets whenever there is goodwill
- you can only recognise intangible assets whenever the transaction is not in common control
- how should i measure the raise in value (following the recognision of the asset)? in equity? but how to solve the problem that the company value then will exceed the fair value (impairment?)?