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(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Royalty arrangements as contingent considerations – Companies in the extractive industry often acquire properties that are subject to a royalty payable to the seller of such property. Are the royalty arrangements contingent consideration? A royalty payable to the seller of the property in a business … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Reverse acquisitions How to? – or reverse mergers present unique accounting and reporting considerations. Depending on the facts and circumstances, these transactions can be asset acquisitions, capital transactions, or business combinations. A reverse acquisition that is a business combination can occur only if the accounting … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Recognition of restructurings or exit activities – Liabilities related to restructurings or exit activities of the acquiree should only be recognized at the acquisition date if they are preexisting liabilities of the acquiree and were not incurred for the benefit of the acquirer. Absent these … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Recognising what you acquired in a business combination or recognizing and measuring the identifiable assets acquired, liabilities assumed, and any non-controlling interest in the acquiree. IFRS 3 provides the following recognition principle for assets acquired, liabilities assumed, and any non controlling interest in the acquiree: … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 01/03/2020 IFRS 3 Definition: Measurement period – the period after the acquisition date during which the acquirer may adjust the provisional amounts recognized for a business combination, providing the acquirer with a reasonable time to obtain the information necessary to apply the requirements of IFRS 3. The measurement … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Executive Compensation in Acquisitions – The acquirer in a business combination may or must agree to assume existing compensation arrangements with employees of the acquiree or may establish new arrangements to compensate those employees for postcombination services. These arrangements may involve cash payments to the … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Escrow agreement on acquisition – How should the buyer account for funds placed in escrow? Amounts paid to a third party or the seller’s escrow account may be contingent consideration if the release of the funds is contingent on whether specified future events occur or … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Continuing employment – Contingent arrangements payable to former shareholders that continue in employment may be linked to the different future performance metrics of the acquired business. What indicators help differentiate consideration from remuneration of post-combination services? IFRS 3 Continuing employment Contingent arrangements payable to selling … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 IFRS 3 Business combinations achieved in stages – Additional guidance for applying the acquisition method to particular types of business combinations Business combinations achieved in stages. A ‘business combination achieved in stages’ (step acquisition) is a business combination in which the acquirer obtains control of an acquiree … Read more

(adsbygoogle = window.adsbygoogle || []).push({}); Last update 24/02/2020 Financial guarantee contract – IFRS 17 Definition: A contract that requires the issuer to make specified payments, to reimburse the holder for a loss it incurs because a specified debtor fails to make a payment when due in accordance with the original or modified terms of a … Read more