Ind AS 103, Business Combinations, provides specific guidance on accounting for business combinations. A business combination is a transaction or other event in which a reporting entity (the acquirer) obtains control of one or more businesses (the acquiree). Under Ind AS 103, all business combinations are accounted for using the purchase method that considers the acquisition date fair values of all assets, liabilities and contingent liabilities of the acquiree. The limited exception to this principle relates to acquisitions between entities under common control.

Continuing with the series of special sessions, this session focusses on the technology sector. We discussed some of the significant accounting issues arising due to a business combination with the help of practical examples or case studies relevant for the technology sector.

Some of the key issues discussed are:

• Allocation of goodwill to Cash Generating Units (CGUs)
• Deferred tax implication in recognition of assets at fair value
• Common control business combination accounting
• Consolidation of entities through investment fund.

Downloads:

Slidedeck (PDF, 1MB)