When Conoco Inc. of Houston, Texas, announced the CDN $7 billion acquisition of Gulf Canada Resources Limited of Calgary, Alberta, a large segment of the press release was devoted to outlining all of the expected benefits to be received from the assets acquired. The acquisition price represented a 35 percent premium over Gulf a closing share price on the announcement date. Included in the assets of Gulf were the following;

• Proven reserve of over 1 billion barrels of oil;

• Probable reserves of approximately 1.2 billion barrels of oil;

• Proven reserves of 1.4 trillion cubic feet of natural gas;

• Probable reserves of 2.9 trillion cubic feet natural gas;

• Four million acres of undeveloped land in western Canada;

• A 72 percent interest in Gulf Indonesia Resources Limited; included in this company's asset were reserves of 180 million barrels of oil and 1.5 trillion cubic feet of gas;

• A 9 percent interest in joint venture, Syncrude Canada ltd., which is developing the heavy oil tar sands in Northern Alberta;

• Long term contracts to deliver 3 trillion cubic feet of natural gas to Southeast Asia;

• Recent exploration successes in Sumatra and offshore java.

Required:

Many of the assets acquired in this business combination present particular valuation challenge. Provide guidance to the financial staff of Conoco as to how the aggregate purchase price should be allocated in the portfolio of Gulf Canada Resources Limited. Explain your answer in terms of the provisions of IFRSs.

Please send me the answer as soon as possible