Chapter 2 Summary (1st half)

I. Share-for-share exchanges
II. Business combination achieved in stages
(Step acquisition)
III. The acquirer shall account a business combination achieved in stages as follows:
1. Remeasure the previously held equity interest in the acquiree at its
acquisition-date fair value; and
2. Recognize the gain or loss on the remeasurement in:
a. Profit or loss
b. Other comprehensive income
IV. Business combination achieved w/o transfer of consideration
V. Measurement period
VI. Requirements of PFRS 3:
1. The consideration transferred;
2. Any non-controlling interest in the acquiree;
3. Previously held equity interest in the acquiree, in the case of a business
combination achieved in stages;
4. The identifiable assets acquired and liabilities assumed; and
5. The resulting goodwill or gain on a bargain purchase.
VII. PAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
VIII. Determining what is part of the business combination transaction
a. Reasons for the transaction
b. Party initiating the transaction
c. Timing of the transaction