IFRS 3 — Business Combinations
Modules of the standard
- Concepts57 publishedNormative and pedagogical mapping.
- Questions121 publishedTrue/false, quizzes, calculations, entries, mini-cases, judgment.
- Practical cases5 publishedProgressive cases, from beginner to expert.
- Workpapers4 publishedWorking papers with calculations and entries.
- Professional file1 publishedSimulation of a full engagement.
- Exams2 publishedSealed, versioned final exams.
- Explanations (lessons)16 publishedLesson explanations, chapter by chapter.
Practical cases
- Acquisition of an activity: business or group of assets? Scope exclusions, inputs and processes, concentration test, acquirer and acquisition dateL1Beginner
- Purchase price allocation: fair values, deferred tax, non-controlling interest (fair value or proportionate share), goodwill, gain on a bargain purchase and acquisition costsL2Intermediate
- Contingent consideration and measurement period: classification, initial fair value, remeasurement, contingent liability, indemnification asset and retrospective adjustmentsL3Advanced
- Step acquisition: remeasurement of the previous interest, reclassification of other comprehensive income, goodwill, pre-existing relationship and remuneration for future servicesL3Advanced
- File of an acquiring group: complex allocation (leases, reacquired rights, replacement awards, employee benefits, liabilities within IAS 37), reverse acquisition in outline, allocation of goodwill and disclosuresL4Expert
- File of a group: identification, purchase price allocation, contingent consideration and step acquisition (IFRS 3)L4Expert
Workpapers
- Identifying a business combination: scope of the standard, business or group of assets, common control, acquirer and acquisition date
- Purchase price allocation: consideration transferred, fair values, deferred tax, non-controlling interest (two methods), goodwill or gain on a bargain purchase and allocation of goodwill
- Contingent consideration and measurement period: classification, initial fair value, remeasurement, retrospective adjustments, contingent liability, indemnification asset, reacquired right and replacement award
- Step acquisition: remeasurement of the previously held interest, other comprehensive income reclassified, goodwill, pre-existing relationship, remuneration and separate transactions
Concepts by topic
Mapping texts (concept labels, objectives, paragraph summaries) are available in French only for now.
Scope of the standard
- Scope of IFRS 3 and the acquisition methodCore4 questions
- Business combinations under common controlImportant2 questions
- Formation of a joint arrangementAdvanced1 question
- Asset acquisition or business combinationCore3 questions
Definition of a business
- Inputs, processes and outputs of a businessCore3 questions
- Substantive processCore4 questions
- The optional concentration testImportant2 questions
The acquirer and the acquisition date
- Identifying the acquirer through controlCore3 questions
- Indicators of the acquirerImportant2 questions
- The acquisition dateCore3 questions
Recognising the items acquired
- The recognition principleCore4 questions
- Classification and designation at the acquisition dateImportant2 questions
- Identifiable intangible assetsImportant2 questions
Measurement at fair value
- The fair value principle and identifiable net assetsCore3 questions
Exceptions to recognition and measurement
- Contingent liabilities assumedCore3 questions
- Liabilities within IAS 37 or IFRIC 21Advanced1 question
- Deferred taxes in a business combinationCore3 questions
- Employee benefits acquiredAdvanced1 question
- Indemnification assetsImportant2 questions
- Leases in which the acquiree is the lesseeAdvanced1 question
- Reacquired rightsAdvanced1 question
- Replacement share-based payment awardsAdvanced1 question
- Assets held for saleSpecialised1 question
- Insurance contracts acquiredSpecialised1 question
Non-controlling interests
- Measuring the non-controlling interestCore3 questions
- Components of the non-controlling interestAdvanced1 question
- Effect of the choice on goodwillCore3 questions
Goodwill and bargain purchase gain
- Measuring goodwillCore3 questions
- Purchase price allocationCore3 questions
- Bargain purchaseCore3 questions
- Reassessment before any gainCore3 questions
Consideration transferred
- Measuring the consideration transferredCore3 questions
- Contingent consideration at the acquisition dateCore3 questions
- Classifying contingent considerationCore3 questions
- Subsequent measurement of contingent considerationCore3 questions
- Acquisition-related costsCore3 questions
Business combination achieved in stages
- Remeasuring the previously held interestCore4 questions
- Reclassifying other comprehensive incomeImportant2 questions
The measurement period
- Provisional amounts and the length of the periodCore3 questions
- Measurement period adjustmentsCore3 questions
- After the measurement periodImportant2 questions
What is part of the combination
- Transactions separate from the combinationCore3 questions
- Pre-existing relationshipsImportant2 questions
- Remuneration of former owners who become employeesAdvanced1 question
Reverse acquisitions
- Accounting acquirer in a reverse acquisitionAdvanced1 question
- Consideration in a reverse acquisitionAdvanced1 question
Subsequent measurement
- Subsequent measurement of items acquiredImportant2 questions
Disclosures
- Objective of the disclosuresImportant2 questions
- Specific disclosures for each combinationAdvanced1 question
- Disclosures about adjustmentsSpecialised1 question
- Proposals of the 2024 exposure draftSpecialised1 question
Boundaries with other standards
- Link to IFRS 10: control and changes in ownershipAdvanced1 question
- Link to IFRS 13: fair valueSpecialisedNo question
- Link to IAS 36: goodwill and cash-generating unitsImportant2 questions
- Link to IAS 12: deferred taxSpecialisedNo question
- Link to IAS 38: acquired intangiblesSpecialised1 question
- Link to IFRS 9: contingent consideration as a financial liabilitySpecialised1 question