In the case of business acquisition, our team supports clients to properly apply the regulations and requirements of IFRS 3 Business Combinations. In particular, we provide services in following areas:
- Identification of business combination and method of accounting
- Recognition and measurement in the financial statements of identifiable assets acquired, liabilities and [...] non-controlling interest (NCI)
- Fair value valuation of loan portfolios and deposits (in banks and financial institutions)
- Recognition and measurement of goodwill or the gain on a bargain purchase
- Disclosure of information about current business combinations to enable users of financial statements to evaluate the nature and financial effect of a business combination.
We provide advisory and support in the next steps of applying acquisition accounting for a business combination:
- Determining whether a transaction is a business combination
- Identify the acquirer
- Determine the date of acquisition
- Identification of the elements of the transaction that should be accounted for separately from the business combination
- Measurement of the consideration transferred
- Identification and measurement of the identifiable assets acquired and liabilities assumed in the business combination
- Measure NCI
- Determine the amount of goodwill or the gain on a bargain purchase
- Recognise any measurement period adjustments.