Business combinations can occur in various ways, such as by transferring cash, incurring liabilities, issuing equity instruments (or any combination thereof), or by not issuing consideration at all (i.e.IFRS 3 provides additional guidance on determining whether a transaction meets the definition of a business combination, and so accounted for in accordance with its requirements. ĭetermining whether a transaction is a business combination Acquisitions by an investment entity of a subsidiary that is required to be measured at fair value through profit or loss under IFRS 10 Consolidated Financial Statements.Combinations of entities or businesses under common control (the IASB has a separate agenda project on common control transactions).The acquisition of an asset or group of assets that is not a business, although general guidance is provided on how such transactions should be accounted for.IFRS 3 must be applied when accounting for business combinations, but does not apply to: *definition narrowed by 2018 amendments to IFRS 3 issued on 22 October 2018 effective 1 January 2020 Scope Transactions sometimes referred to as 'true mergers' or 'mergers of equals' are also business combinations as that term is used in business An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities* acquisition date The date on which the acquirer obtains control of the acquiree acquirer The entity that obtains control of the acquiree acquiree The business or businesses that the acquirer obtains control of in a business combination business combination A transaction or other event in which an acquirer obtains control of one or more businesses. ![]() The revisions result in a high degree of convergence between IFRSs and US GAAP in the accounting for business combinations, although some potentially significant differences remain. FASB issued a similar standard in December 2007 (SFAS 141(R)). IFRS 3 (2008) resulted from a joint project with the US Financial Accounting Standards Board (FASB) and replaced IFRS 3 (2004). It sets out the principles on the recognition and measurement of acquired assets and liabilities, the determination of goodwill and the necessary disclosures. acquisitions and mergers) and their effects. IFRS 3 (2008) seeks to enhance the relevance, reliability and comparability of information provided about business combinations (e.g. IFRS 3 Business Combinations (2008) issuedĪpplies to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 July 2009Īmended by Annual Improvements to IFRSs 2010 (measurement of non-controlling interests, replaced share-based payment awards, transitional arrangements for contingent consideration)Įffective for annual periods beginning on or after 1 July 2010Īmended by Annual Improvements to IFRSs 2010–2012 Cycle (contingent consideration)Īpplicable for business combinations for which the acquisition date is on or after 1 July 2014Īmended by Annual Improvements to IFRSs 2011–2013 Cycle (scope exception for joint ventures)Įffective for annual periods beginning on or after 1 July 2014Īmended by Annual Improvements to IFRS Standards 2015–2017Įffective for annual periods beginning on or after 1 January 2019Īmended by Definition of a Business (Amendments to IFRS 3)Įffective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 January 2020 and to asset acquisitions that occur on or after the beginning of that periodĪmended by Reference to the Conceptual Framework (Amendments to IFRS 3)Įffective for annual periods beginning on or after 1 January 2022Īmendments under consideration by the IASB ![]() (These proposals were not finalised, but instead considered as part of the June 2005 exposure draft)Įxposure Draft Proposed Amendments to IFRS 3 published IFRS 3 Business Combinations (2004) and related amended versions of IAS 36 and IAS 38 issuedĮffective for business combinations for which the agreement date is on or after 31 March 2004Įxposure Draft Combinations by Contract Alone or Involving Mutual Entities published Exposure Draft ED 3 Business Combinations and related exposure drafts proposing amendments to IAS 36 and IAS 38 published
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |