ImportantAdvanced
After the measurement period
Learning objectives
- Distinguish a measurement period adjustment from a subsequent change or from the correction of an error under IAS 8.L3
Normative references
- IFRS 3 §50After the measurement period ends, the acquirer revises the accounting for a business combination only to correct an error in accordance with IAS 8. The title of IAS 8 shown in the 2025 edition is the one resulting from the amendments made by IFRS 18 (para. 64R, applied with IFRS 18); the rule is unchanged.
Original summaries of the paragraphs (reference register), never a quotation of the standard.
6 questions
- The measurement period does not exceed one year from the acquisition date and may end earlier if the acquirer obtains the information it was seeking.L2
- At the reporting date, the initial accounting for a business combination is incomplete for some items. What does the acquirer do, and for how long can it review those amounts?L2
- Acquisition of Brande SA on 1 October N. At the reporting date of 31 December N, the valuation of a patent is not complete. The valuer's report received on 15 March N+1 concerns facts and circumstances that existed at 1 October N. What treatment does Brande apply?L3
- Pluton SA receives two pieces of information before the end of the measurement period of a business combination: (1) a report shows that a plot of land was worth 200,000 less than the provisional amount at the acquisition date; (2) three months after the acquisition date, the main customer of the acquiree terminated its contract, reducing the value of a customer relationship by 150,000. Write a short note concluding on the treatment of each piece of information, distinguishing facts of the case, rule and professional judgement.L3
- After the end of the measurement period, the acquirer still adjusts goodwill when it receives new information about the fair value of an asset acquired.L3
- Fourteen months after the acquisition, Vignes SA, whose measurement period has ended, discovers a calculation error in the measurement of a plot of land at the acquisition date. Which treatment applies?L3