Provisional amounts and the length of the period

Learning objectives

• Identify the provisional amounts and the end of the measurement period (no more than one year from the acquisition date).L2, L3
• Determine the date on which the measurement period ends in a case.L2, L3

Normative references

• IFRS 3 §45When the initial accounting is incomplete by the end of the reporting period in which the combination occurs, the acquirer reports provisional amounts; during the measurement period, it retrospectively adjusts them and recognises additional assets or liabilities to reflect new information about facts and circumstances that existed at the acquisition date. The period ends as soon as the acquirer receives the information it was seeking or learns that it is not obtainable, and shall not exceed one year from the acquisition date.

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

3 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