BUSINESS COMBINATION

BUSINESS COMBINATION. IFRS 3.

IFRS 3 : Business Combination. 5 ACQUISITION METHOD.

Business Combination is a transaction or other event in which an acquirer obtains control of one or more businesses ..

2 ELEMENTS OF BUSINESS COMBINATION Business - is an integrated set of activities and assets that is capable of being conducted and managed for the purpose providing a return to investors, or lower costs or other economic benefits directly to investors or other owners, members or participants. Control - is the power to govern accounting and financial policies.

TYPES OF BUSINESS COMBINATION. HORIZONTAL. CONGLOMERATE.

Objectives. Improves the relevance, reliability and comparability of information about a business combination and its effects..

Principles and requirements. Measure the assets, liabilities, non controlling interest.

Acquisition Method. ACQUISITION METHOD: 25% 100% Recognizing and measuring GOODWILL OR A GAIN FROM A BARGAIN PURCHASE Recognizing and measuring the IDENTIFIABLE ASSETS ACQUIREU THE 1.1AB11.t TIES ASSUMED AND ANY NOS.COVIROLLING INTEREST in the acquiree DETERMINING THE ACQUISITION DATE IDENTIFYING ACQUIRER.

Acquisition Method. STEP 1 : IDENTIFYING THE ACQUIRER.

Acquisition Method. STEP 2 : DETERMINING THE ACQUISITION DATE.

Acquisition Method. STEP 3 : RECOGNIZE ASSETS, LIABILITIES AND NON CONTROLLING INTEREST.

Acquisition Method. STEP 3 : RECOGNIZE ASSETS, LIABILITIES AND NON CONTROLLING INTEREST.

Acquisition Method. STEP 3 : RECOGNIZE ASSETS, LIABILITIES AND NON CONTROLLING INTEREST.

Acquisition Method. STEP 4 : RECOGNIZE GOODWILL. Goodwill t he acquirer shall recognize goodwill as of the acquisition date measured as the excess of Aggregate of: Fair value of consideration transferred Non-controlling interest in acquiree Acquisition in stages: Fair value of previously held interest Over the net acquisition date identifiable assets acquired and the liabilities assumed.

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