The acquisition date

Learning objectives

• Determine the acquisition date (the date on which control is obtained), generally the closing date, from the facts of a case.L1, L2
• Justify an acquisition date different from the closing date when a written agreement transfers control earlier or later.L1, L2

Normative references

• IFRS 3 §8The acquisition date is the date on which the acquirer obtains control of the acquiree.
• IFRS 3 §9The acquisition date is generally the closing date (transfer of the consideration, acquisition of the assets, assumption of the liabilities), but control may be obtained earlier or later, for example when a written agreement provides for another date; the acquirer considers all pertinent facts and circumstances.

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

3 questions

• Under IFRS 3, what is the acquisition date of a business combination?L1
• The acquisition date can precede the closing date of the transaction, for example when a written agreement gives the acquirer control earlier.L1
• Quasar SA signs the agreement to acquire Pavot SA on 15 November. The price and the shares are transferred (closing) on 20 December. Case assumption: a written agreement provides that Quasar directs Pavot's activities from 1 December, and the relevant facts and circumstances confirm that it has control on that date. Quasar's reporting period ends on 31 December. What is the acquisition date?L2