CERTYNEX IFRS ACADEMY

Carbo SA acquires three identical machines from a bankrupt manufacturer, without taking over any employees, customer contracts or production process. Case assumption: management concludes that this set is not a business. What consequence does it draw under IFRS 3?

It applies the acquisition method, because it obtains control of the three machines.

It applies IFRS 3, because the machines are inputs and production processes can be added later by Carbo's management.

It does not apply IFRS 3: the transaction is the acquisition of a group of assets, excluded from the scope of the standard.

It applies IFRS 3 without goodwill, because the price paid equals the fair value of the machines.