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IFRSclass.comTM |
| U.S. GAAP Codification | IFRS International Standards | Accounting Standards, ASC |
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International Financial Reporting Standard 3 |
| IFRS Accounting Topics |
| International Financial Reporting Standard (IFRS) 3 |
IFRS 3
Business Combinations
November 1983: IAS 22 Accounting for Business Combinations
March 2004: IFRS 3 Business Combinations replaced IAS 22
Revised in January 2008 |
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Acquisition method for
business combinations One of the entities in business combination is identified as the acquirer. Acquirer gains control of the acquiree. Others have non-controlling interest in the acquiree. |
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Assets acquired and liabilities assumed --> measured at fair value on acquisition date |
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If (1) > (2) --> paid more for goodwill Goodwill = (1) - (2) (1) Consideration paid to acquire net assets (2) Fair value of net assets (assets - liabilities) acquired |
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If (1) < (2) --> paid less, so gain Gain on bargain purchase = (2) - (1) (1) Consideration paid to acquire net assets (2) Fair value of net assets (assets - liabilities) acquired Gain on bargain purchase --> recognized in profit or loss (current period earnings) --> on acquisition date |
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50 Questions onAccounting Journal Entries 2012 Edition for iPhone and iPad |
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| IAS 40 - IAS 41 |
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IAS 40:
Investment property |
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IAS
40 Technical Notes |
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IAS 41:
Agriculture |
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