Accounting treatment of inventory acquired having high fair value and sold in the same period in business combination?

Question

please guide with reference and double entry.

Answer 1

Your question is not so clear to me. The measurement principle (IFRS 3.18–20) is that assets and liabilities that qualify for recognition are measured at their acquisition-date fair values. You need to recognize the inventories in your book at the acquisition date fair value. Sale after the acquisition is recorded as usually.