IFRS 3: assets acquired and liabilities assumed

Learning objectives

• Analyse the use of the IFRS 13 framework to measure the assets acquired and liabilities assumed, subject to the exceptions in IFRS 3.L4

Normative references

• IFRS 13 §9Definition: the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
• IFRS 13 §31Highest and best use establishes the valuation premise: the asset is used in combination with other assets or liabilities, or on a stand-alone basis.

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

1 question

• In a business combination, a group measures an acquired asset at fair value. What is the role of IFRS 13?L4