IFRS 3Chapter 12Lesson 1
What is part of the combination: separate transactions
Step 1 of 6Learning objectives
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Only the consideration and the items exchanged for the acquiree fall under the acquisition method; transactions arranged mainly in the acquirer's interest (pre-existing relationship, future services, reimbursed costs) are accounted for separately.
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Learning objectives
- Distinguish what is part of the exchange for the acquiree from separate transactions.
- Treat the settlement of a pre-existing relationship as a separate transaction.
- Qualify a payment to former owners who become employees using the indicators.