The correct answers are:
Cash paid;
Quoted shares, at their market valuation.
Cash is the most obvious way of paying for an acquisition. However shares might be offered to the subsidiary's shareholders as well as cash. If the acquiring company is covering the costs of acquisition these form part of the total cost of the investment.
Fees associated with the acquisition must be expensed as incurred under the revised IFRS 3.
The costs of issuing capital instruments to fund the acquisition are specifically excluded under IFRS 3. These should be written off against the carrying value of the capital instrument.
Provision for future losses of the subsidiary being acquired is not allowed under IFRS 3 unless the outgoing subsidiary management incurred those liabilities since otherwise no obligating event existed at the time of combination. If so this would impact the assets and liabilities being transferred not the purchase consideration. If the liability were incurred post-acquisition it would not be part of the cost of the investment on acquisition.
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