Part (b) asked candidates to consider if a subsidiary's in-process research costs and a list of customers were intangible assets that should be recognised separately (to goodwill) on consolidation. The short answer to this is they both should be, however most candidates thought the first shouldn't be.

In-process research is an example of where its treatment in the entity financial statements (it should be expensed) differs to that on consolidation, where it should be recognised if its fair value can be reliably measured