I am trying to make sense of a situation which i have come into at the back end whereby some of the the business assets of one legal entity have been sold to a newly created legal entity as part of a group wide restructuring activity. No consideration was transferred by the new entity because it was decided that it would be waived through an intercompany agreement which would wipe out any i/c debtors and creditors. However, a fair market valuation was obtained in order to arrive at a purchase price of $30M so that the gain could be recorded in the seller's books. My question is how do i go about recording the purchase of the net assets - presumably i cannot allocate the $30M against the FV of the NA at acquisition and book goodwill? i am confused as in my studies there is always a parent co buying a sub and the treatment of the purchase is clearer.