(1) The acquisition method of accounting is as follows.
(2) The identifiable assets and liabilities of the undertaking acquired shall be included in the consolidated balance sheet at their fair values as at the date of acquisition. In this paragraph the "identifiable assets or liabilities" means the assets or liabilities which are capable of being disposed of or discharged separately, without disposing of a business of the undertaking.
(3) The income and expenditure of the undertaking acquired shall be brought into the group accounts only as from the date of acquisition.
(4) There shall be set off against the acquisition cost of the interest in the shares of the undertaking held by the undertakings dealt with in the group accounts, the interest of the undertakings dealt with in the group accounts in the adjusted capital and reserves of the undertaking acquired.
For this purpose -
"the acquisition cost" means the amount of any cash consideration and the fair value of any other cons