GAAP Purchase Method, IFRS Purchase Method, and GAAP Acquisition Method Accounting

The table below summarizes some differences between GAAP Purchase Method, IFRS Purchase Method, and GAAP Acquisition Method accounting.

Item	PURCHASE METHOD: GAAP	PURCHASE METHOD: IFRS	ACQUISITION METHOD: GAAP
Purchase Price	Cash Paid + fair value of other considerations + direct costs	Same as GAAP Purchase Method.	Cash Paid + fair value of other considerations.
Fair Value of Subsidiary	When parent acquires less than 100%, the amount of fair value over book value is recognized in proportion to the parent's ownership.	Consolidated balance sheet recognizes the full amount of the fair value in excess of the acquired company's book value (note this difference from GAAP).	Same as IFRS Purchase Method.
Subsidiary Contingent Liabilities	Recognized on the sale date at fair value.	Same as GAAP Purchase Method.	Same as GAAP Purchase Method.
Subsidiary In-Process R&D	Recognized on the sale date at fair value, as part of the subsidiary's net assets, then expensed.	Recognized on the sale date at fair value as part of the subsidiary's net assets; reported on the consolidated balance sheet as an intangible asset.