The 4 Step Acqusition Method for Business Combinations under IFRS 3

Under IFRS 3, a business combination must be accounted for using a technique called the “acquisition method”. This views the transaction from the perspective of the acquirer and involves the following stages:

  1. Identify acquirer
  2. Determine acquisition date
  3. Recognise and measure
    Assets, liabilities and NCI in acquiree
    at FV at the acquisition date
  4. Goodwill/Bargain purchase
    Difference between consideration paid and net assets acquired

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