Link with IFRS 3

Learning objectives

• Identify the link with IFRS 3 for goodwill arising on the acquisition of a foreign operation.L3

Normative references

• IAS 21 §47Goodwill arising on the acquisition of a foreign operation and fair value adjustments to the carrying amounts of its assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operation: they are expressed in its functional currency and translated at the closing rate in accordance with paras. 39 and 42 (cross-reference to para. 41A added by the November 2025 amendment, future requirement).

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• The Moreau group, whose presentation currency is the euro, acquires an American subsidiary. The goodwill, determined under IFRS 3, is 2,000,000 dollars. How does IAS 21 treat it?L3