CERTYNEX IFRS ACADEMY

For each business combination, one of the combining entities must be identified as the acquirer. On what basis is this identification made in the first place?

On the legal form of the transaction: the acquirer is the absorbing entity, the one that survives the transaction.

On the split of the voting rights of the combined entity between the former owners of each of the combining entities.

On the means of payment: the acquirer is the entity that pays in cash, not the one that issues securities.

On the IFRS 10 guidance on control: the acquirer is the entity that obtains control of the acquiree.