What Is Ias3

Overview. IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business (e.g. an acquisition or merger). … A revised version of IFRS 3 was issued in January 2008 and applies to business combinations occurring in an entity’s first annual period beginning on or after 1 July 2009.

What does IFRS 3 say?

The core principles in IFRS 3 are that an acquirer measures the cost of the acquisition at the fair value of the consideration paid; allocates that cost to the acquired identifiable assets and liabilities on the basis of their fair values; allocates the rest of the cost to goodwill; and recognises any excess of …

Who does IFRS 3 apply to?

IFRS 3 applies to all business combinations identified as such under IFRS 3 with the following three exceptions: the formation of a joint arrangement in the financial statements of the joint arrangement itself. a combination of entities or businesses under common control (referred to as common control combinations)