IFRS 3Chapter 1Lesson 1
A business combination or a simple purchase of assets?
Step 1 of 6Learning objectives
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IFRS 3 applies when an acquirer obtains control of a business; the purchase of assets that are not a business, the formation of a joint arrangement and combinations under common control are outside its scope.
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Learning objectives
- Say when a transaction is a business combination accounted for under the acquisition method.
- Distinguish a combination from an asset acquisition and draw the accounting consequences.
- Recognise a combination under common control and the formation of a joint arrangement, two excluded transactions.