Method of accounting for business combinations Acquisition method

[hassan]

The acquisition method (called the 'purchase method' in the 2004 version of IFRS 3) is used for all business combinations. [IFRS 3.4]

Steps in applying the acquisition method are: [IFRS 3.5]

Identification of the 'acquirer' Determination of the 'acquisition date' Recognition and measurement of the identifiable assets acquired, the liabilities assumed and any non-controlling interest (NCI, formerly called minority interest) in the acquiree Recognition and measurement of goodwill or a gain from a bargain purchase

[azizur.bba]

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