Employee benefits acquired

Learning objectives

• Identify that the acquiree's employee benefit liabilities and assets are subject to a measurement exception rather than the general fair value principle.L3, L4

Normative references

• IFRS 3 §26Exception for employee benefits: liabilities and assets related to the acquiree's employee benefit arrangements are recognised and measured in accordance with IAS 19 rather than under the general principles of IFRS 3.

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

1 question

• Fresnel SA acquires Obier SA, which has a defined benefit pension plan showing a deficit at the acquisition date. Justify in a few lines how Fresnel treats this plan, and explain why market fair value is not the measurement basis used.L3