Business Combination Summary
Business Combination Summary
Business Combination Summary
Business Combinations
(limited)
Objective
> to improve the relevance, reliability and comparability of the information
that a reporting entity provides in its financial statements about a business
combination and its effects.
Scope
> does not apply to:
1. joint venture
2. the acquisition of an asset or a group of assets that does not
constitute a business
3. combination of entities or businesses under common control
Recognition principles
> As of the acquisition date, the acquirer shall recognise,
separately from goodwill, the identifiable assets acquired, the
liabilities assumed and any non-controlling interest in the
acquiree.
i. the identifiable assets acquired and liabilities assumed
must meet the definitions of assets and liabilities in
the Framework for the Preparation and Presentation of
Financial Statements at the acquisition date.
ii. the identifiable assets acquired and liabilities assumed
must be part of what the acquirer and the acquiree (or
its former owners) exchanged in the business
combination transaction rather than the result of
separate transactions.
TERMS