CERTYNEX IFRS ACADEMY

Orvane SA obtains control of a set of assets and liabilities. Where does the IFRS 3 analysis start?

With the automatic application of the acquisition method, once control of the assets is obtained.

With whether the assets acquired and liabilities assumed constitute a business; if not, it is an asset acquisition.

With a comparison of the price paid and the carrying amount of the assets: a positive difference signals a combination.

With the classification used in the acquisition agreement, which is binding for accounting purposes.