Where a pre-transition combination is not restated, the classification under the previous GAAP (acquisition, reverse acquisition or uniting of interests) stands. At the transition date the entity recognises every asset acquired and liability assumed that the Standards require, except financial assets and liabilities derecognised under the previous GAAP, and removes items that do not qualify as assets or liabilities under the Standards, such as intangible assets that fail the AASB 138 criteria. The previous GAAP carrying amounts immediately after the combination serve as deemed cost, with later measurement under the Standards; items measured at fair value under the Standards are remeasured at the transition date. Goodwill is adjusted only to reclassify intangible items into or out of it and to recognise the resolution of contingent consideration, and it is tested for impairment at the transition date; goodwill written off against equity stays unrecognised. A subsidiary not consolidated under the previous GAAP is consolidated at transition, with its assets and liabilities measured under the Standards or at the deemed cost they would have in its own first statements, and the difference from the investment cost treated as goodwill. Past acquisitions of associates, joint ventures and joint operations follow the same rules.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.