IFRS 3 Business Combinations – FAQ | IFRS

IFRS 3 Business combinations

IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business (e.g. an acquisition or merger). Such business combinations are accounted for using the ‘acquisition method’, which generally requires assets acquired and liabilities assumed to be measured at their fair values at the acquisition date.

A revised version of IFRS 3 was issued in January 2008 and applies to business combinations occurring in an entity’s first annual period beginning on or after 1 July 2009.

Introduction
IDENTIFYING A BUSINESS COMBINATION
THE ACQUISITION METHOD

The acquisition method
Exceptions to IFRS principles in the acquisition method
The Acquisition Method illustrated
Guidance in identifying the acquirer

Related topics (IFRS 13)

IDENTIFIABLE ASSETS ACQUIRED

Business Combinations – Consideration transferred
Fair Value of Tangible Assets
Assets with uncertain cash flows (valuation allowances)
Consideration transferred and Goodwill
Recognising operating leases and intangible assets
Acquisition of investment properties

What are Intangible Assets other than Goodwill?
Identify and separate Intangible assets
Drawbacks and Benefits of Intangible assets
Customer relationships valuation
Customer contracts and related customer relationships
Common elements of customer relationships
Non-contractual customer relationships
Order or production backlog
Customer lists
Internet domain names
Trademarks, Trade names, Service marks, Collective marks and Certification marks
Classification of Software Cost
Technology-based intangible assets – Legal titles and secrets
Technology-based intangible assets – Other technology
Contract-based intangible assets
Artistic-related intangible assets

Goodwill or gain from a bargain
Indemnification assets
SUBSEQUENT MEASUREMENT AND ACCOUNTING

Reacquired rights
Contingent liabilities
Indemnification assets
Contingent consideration

 

DISCLOSURES

 

IFRS 3 Business combinations – The acquisition method IFRS 3 Business combinations – The acquisition method IFRS 3 Business combinations – The acquisition method

IFRS 3 Business combinations – The acquisition method

IFRS 3 Business combinations – The acquisition method

IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business (e.g. an acquisition or merger). Such business combinations are accounted for using the ‘acquisition method’, which generally requires assets acquired and liabilities assumed to be measured at their fair values at the acquisition date.