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    Ifrs 3

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    Mariane Valenzuela
    This document discusses the key accounting requirements and principles for business combinations according to IFRS 3. It outlines that IFRS 3 requires acquirers to (1) recognize and measure goodwill or gain on a bargain purchase, (2) determine what information needs to be disclosed, and (3) recognize and measure identifiable assets, liabilities, and non-controlling interests in an acquiree. The document also lists some of the potential advantageous and disadvantageous effects of business combinations.

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    Ifrs 3

    Uploaded by

    Mariane Valenzuela
    78 views2 pages
    This document discusses the key accounting requirements and principles for business combinations according to IFRS 3. It outlines that IFRS 3 requires acquirers to (1) recognize and measure goodwill or gain on a bargain purchase, (2) determine what information needs to be disclosed, and (3) recognize and measure identifiable assets, liabilities, and non-controlling interests in an acquiree. The document also lists some of the potential advantageous and disadvantageous effects of business combinations.

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    ifrs 3

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    This document discusses the key accounting requirements and principles for business combinations according to IFRS 3. It outlines that IFRS 3 requires acquirers to (1) recognize and measure goodwill or gain on a bargain purchase, (2) determine what information needs to be disclosed, and (3) recognize and measure identifiable assets, liabilities, and non-controlling interests in an acquiree. The document also lists some of the potential advantageous and disadvantageous effects of business combinations.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    78 views2 pages

    Ifrs 3

    Uploaded by

    Mariane Valenzuela
    This document discusses the key accounting requirements and principles for business combinations according to IFRS 3. It outlines that IFRS 3 requires acquirers to (1) recognize and measure goodwill or gain on a bargain purchase, (2) determine what information needs to be disclosed, and (3) recognize and measure identifiable assets, liabilities, and non-controlling interests in an acquiree. The document also lists some of the potential advantageous and disadvantageous effects of business combinations.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 2

    Set out ACCOUNTING Definition of business Brings monopoly

    Next
    REQUIREMENTS combination page
    Identity may cease

    OBJECTIVE
    OBJECTIVES
    Nature of business Difficulty in management
    S combination Next
    page
    E l e me n t s o f
    b u s in e s s Over-capitalization
    c o mb in a t io n
    Set out DISCLOSURE Disadvantageous effects More strict regulation
    REQUIREMENTS

    Name and description of the


    acquiree Competition is eliminated or
    IFRS 3 Business
    PRINCIPLE
    OBJECTIVES
    S Acquisition date
    lessened
    combination
    synergy
    Recognize and Measure the Percentage of voting equity
    goodwill(acquired in BC) or the interests acquired Increased business opportunities
    Gain on Bargain Purchase
    Advantageous effects and earning potential
    Description on how the acquirer
    obtained control of the acquiree
    Reduction of operating costs
    Determine what information
    to disclose Acquisition date Effects/reasons
    Utilization of economies of scale
    Acquisition date fair value of the
    consideration transferred
    Recognize and Measure in its FS
    Cost saving on business expansion
    the Identifiable Asset,liabilities
    assumed and NCI in the Amount of nci of the acquiree
    Acquiree
    Favorable tax implication
    Adfv of previously held equity
    interest and how gain or loss on
    remeasurement was accounted
    OBJECTIV for
    SCOPE
    ES

    Separate transaction-how the input Economic resources


    transaction was accounted for
    and amount recognized Elements of business
    Formation of joint Acquisition of asset or Entities under common combination output result
    venture group of asset control
    any recognized gain on bargain
    purchase resources Systems, standards ,protocols

    Incomplete bc- provisional


    amounts and adjustments
    Buy shares New entity to
    Business
    controlcombined entity
    combination
    Has the power to appoint or remove Buy assets
    majority of boa of acquiree
    Legal merger New entity to
    controlcombined entity
    Definition of business Bu y a s s et s
    Next combination control Indicators(acqu Has the power to cast majority of votes Reverse acquisition
    page
    irer’s point of at board meetings of acquiree
    view) Excludes!

    Has the power over more than half of Joint venture


    the voting rights of acquiree
    Non business
    Acquisition method
    acquisition
    Has control over acquiree’s operating
    and financial policies

    Identify acquirer
    Legally obtainsasset and
    determine acquisition liabilities/closing date
    date
    Asset acquired
    determine the
    consideration given Liabilities assumed
    Statutory consolidation combination
    Non-controlling interest
    Recognize and measure

    Goodwill/gain on bargain purchase


    Step acquisition
    (if situation)
    Asset acquisition Statutory merger absorption
    No consideration paid
    (if situation)

    parent acquirer

    Nature of business
    Next combination
    page
    E l e me n t s o f Stock acquisition acquiree
    b u s in e s s subsidiary
    c o mb in a t io n

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