Merger and acquisition (M&A) activity continues to rise as the world begins its recovery from the COVID-19 pandemic.
Unlike acquiring a business, there isn’t one single IFRS standard that covers selling a business. Instead, there are several standards that you’ll need to consider along the way, from when you first start thinking about selling a business right up until the cash is in the bank.
It’s important to understand the entire picture up front so you don’t miss required disclosures or get surprised by the accounting impacts at the end.
If you’re thinking about selling a business, you’ll need to consider IFRS 5 early in the process, really understand the structure of the transaction and carefully follow the requirements of IFRS 10 when you sell a subsidiary.