Before the date of control, Margrett should Josey is accounted for using equity method, where the investment in associate is adjusted with share of post acquisition reserves of Josey. Such equity method is used until Margrett achieves control in Josey, where consolidated goodwill is calculated, with Joseys net assets are fair valued at date of acquisition (for consolidation purpose).Cash consideration is measured at its face value, equity consideration is measured at fair value of the acquirers shares at date of transfer the instruments.Transaction costs from acquisition may be capitalized within investment in subsidiary in the separate financial statements of Margrett, but such transaction costs must be recognized to profit or loss or within equity in the consolidated financial statements.At date of acquisition, if the acquirer has obligation to compensate the employees of acquiree using share options, such compensation is treated as additional consideration transferred. In th case of Margrett, the option granted seems more to retain the managements service rather than to secure the purchase of a subsidiary. The issue of option will be accounted for using share based payment rather than business combination.Contingent consideration is a payment which depends on prescribed conditions. Contingent consideration could be debt or equity in nature. For equity in nature, no subsequent remeasurement is allowed. For debt in nature, any subsequent remeasurement is to be recognized to profit or loss. Contingently issuable shares where the unit is not fixed is a financial liability. Margrett should measure the consideration transfer at the fair value of the liability at date of acquisition.Internally generated intangible assets normally fail the recognition criteria, as the measurement is not reliable. However, such assets must be recognized to the consolidated financial statements at their fair value at date of acquisition. Such recognition will lower the goodwill recognized. In the post acquisition, normally accounting such as measurement model selection, amortization and impairment are applied.Full or partial goodwill are accounting policy choices rather than mandatory features. Each model may be applied to subsidiary on a case by case basis. Full goodwill will result a higher asset to be recognized in the group, and consequently higher impairment loss on goodwill, if any. However, impairment testing for full goodwill is easier as no re-gross is needed.Nature of consideration should not affect the goodwill calculation, as the considerations are measured at fair value, which represent the value of the exchange. However, if a non financial asset is used as consideration, and it is transferred to subsidiary, such consideration is measured at carrying amount of transferor asset rather than fair value. Also, the measurement period of 12 months do not applied to contingent consideration, which could make a difference if other form of consideration is used.In order to recognized a reorganizational provision, the entity must have present obligation, with a probable payment which can be estimated reliably. These are evident by detailed approved plan and public announcement. In the case of Margrett, if the activity is carried out voluntarily, the provision is not appropriate at date of acquisition.