CERTYNEX IFRS ACADEMY

At the reporting date, the initial accounting for a business combination is incomplete for some items. What does the acquirer do, and for how long can it review those amounts?

It reports provisional amounts and may adjust them for one year from the date the financial statements of the year of the combination are published.

It reports provisional amounts and may adjust them during the measurement period, which does not exceed one year from the acquisition date.

It waits until the information is complete before accounting for the combination, without a time limit set by the standard.

It reports provisional amounts, adjustable without a time limit as long as new information on fair value reaches it.