IFRS 3 Business Combinations

Goodwill or bargain on acquisition

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Topics hide Goodwill or bargain on acquisition – in short Business combinations Summary of purchase consideration and cash flows Analysis of cash flows Assets acquired and liabilities assumed Fair value measurement Intangible assets Goodwill or bargain on acquisition – in short Goodwill is initially measured at cost, being the excess of the aggregate of the … Read more

SPAC Merger under IFRS 3

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Topics hide SPAC Merger Is the transaction a business combination? Accounting when the transaction is not a business combination Accounting when the transaction is a business combination Further considerations Identifying the accounting acquirer Is the acquisition a business combination? Developing an accounting policy when the listed shell is not a business Can the accounting simply … Read more

M and A

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M and A or Mergers and Acquisitions in IFRS language Business Combinations. 1 Identifying a business combination IFRS 3 refers to a ‘business combination’ rather than more commonly used phrases such as takeover, acquisition or merger because the objective is to encompass all the transactions in which an acquirer obtains control over an acquiree no … Read more

Identifying an asset group for valuation purposes – The best read 1 needs

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Topics hide Identifying an asset group for valuation purposes Identifying an asset group for valuation purposes Identifying an asset group Identifying an asset group for valuation purposes is a starting point as one of many scenarios in considering the sale of (part of) a business. An entity acquires assets and assumes liabilities in a business … Read more

Ultimate guide to IFRS 3 Business combinations Good start

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Ultimate guide to 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. Topics hide Definitions: … Read more

Licensing provides rights to a customer

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Licensing establishes a customer’s rights to the intellectual property of an entity. Licenses of intellectual property may include, but are not limited to, licenses of any of the following: Software (other than software subject to a hosting arrangement) and technology Motion pictures, music, and other forms of media and entertainment Franchises Licensing Patents, trademarks, and … Read more

IFRS 3 Royalty arrangements as contingent considerations – Best Fine Read

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Topics hide IFRS 3 Royalty arrangements as contingent considerations Compensation Extractive industry royalty arrangements Example – contingent consideration royalties Royalty arrangement as contingent arrangement Example – Accounting for royalties in the pharmaceutics industry Scenario: Acquisition of a business that includes future royalties payable to a seller IFRS 3 Royalty arrangements as contingent considerations Companies in … Read more

1 best complete exercise – Common control transactions v Newco formation

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(adsbygoogle = window.adsbygoogle || []).push({}); Topics hide Common control transactions v Newco formation Overview Common control transactions Book value (carry-over basis) accounting Acquisition accounting Consolidated financial statements of the transferor Discussion paper IASB (2021) Current accounting Should pre-combination information be restated? Set the framework – Historical Interpretations Committee ‘Transistory’ common control (IFRS 3.2(c)) Associates and … Read more

Determining a leases discount rate

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Determining a leases discount rate IFRS 16.26 sets out the discount rate requirement as follows: “At the commencement date, a lessee shall measure the lease liability at the present value of the lease payments that are not paid at that date. The lease payments shall be discounted using the interest rate implicit in the lease, … Read more