Outsourcing refers to a situation where an entity contracts an outside organisation to perform part of a manufacturing process or another function normally undertaken within the entity. Outsourcing may refer to an entity’s decision to make a particular component in house or to buy that component externally. Typically, however, outsourcing refers to longer term arrangements. …

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Step Acquisitions under IFRS 3

Not all business combinations take place in one go. Sometimes a parent can acquire an entity in stages, which we call a step acquisition. This takes place when an acquirer holds an existing equity interest in the acquiree before the date of control. Say, for example, a company may hold 25% of a company, and then buy out another shareholder taking their share to 55% of the acquiree.

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