IFRS 3Chapter 11Lesson 1
The measurement period: provisional amounts and adjustments
Step 1 of 6Learning objectives
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If the initial accounting is incomplete at the reporting date, the acquirer reports provisional amounts and has at most one year to adjust them retrospectively, against goodwill, based on facts existing at the acquisition date; afterwards, only error correction is possible.
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Learning objectives
- Identify provisional amounts and the end date of the measurement period.
- Calculate and record a measurement period adjustment against goodwill.
- Distinguish an adjustment from a later change or an error correction.