CERTYNEX IFRS ACADEMY

Maréchal SA buys an office building let to several tenants, without taking over any staff or management process. Case assumption: management has concluded that this set is not a business. How is the transaction treated under IFRS 3?

Maréchal applies the acquisition method and recognises goodwill for the difference between the price and the value of the building.

The transaction is outside the scope of IFRS 3: it is the acquisition of an asset, not of a business.

Maréchal applies IFRS 3, because the building has tenants and therefore generates outputs.

Maréchal applies IFRS 3, because it obtains control of a set of lease contracts.