IFRS 3 defines a business combination as when an acquirer obtains control over another business, known as the acquiree. The acquisition method must be used to account for the business combination. This method involves 5 steps: 1) Identifying the acquirer, 2) Determining the acquisition date, 3) Determining the consideration transferred, 4) Recognizing and measuring the acquiree's assets, liabilities, and non-controlling interest, and 5) Recognizing and measuring any resulting goodwill or gain on bargain purchase. Fair values are measured as of the acquisition date and may be adjusted within one year of that date if values change.
IFRS 3 defines a business combination as when an acquirer obtains control over another business, known as the acquiree. The acquisition method must be used to account for the business combination. This method involves 5 steps: 1) Identifying the acquirer, 2) Determining the acquisition date, 3) Determining the consideration transferred, 4) Recognizing and measuring the acquiree's assets, liabilities, and non-controlling interest, and 5) Recognizing and measuring any resulting goodwill or gain on bargain purchase. Fair values are measured as of the acquisition date and may be adjusted within one year of that date if values change.
IFRS 3 defines a business combination as when an acquirer obtains control over another business, known as the acquiree. The acquisition method must be used to account for the business combination. This method involves 5 steps: 1) Identifying the acquirer, 2) Determining the acquisition date, 3) Determining the consideration transferred, 4) Recognizing and measuring the acquiree's assets, liabilities, and non-controlling interest, and 5) Recognizing and measuring any resulting goodwill or gain on bargain purchase. Fair values are measured as of the acquisition date and may be adjusted within one year of that date if values change.
IFRS 3 defines a business combination as when an acquirer obtains control over another business, known as the acquiree. The acquisition method must be used to account for the business combination. This method involves 5 steps: 1) Identifying the acquirer, 2) Determining the acquisition date, 3) Determining the consideration transferred, 4) Recognizing and measuring the acquiree's assets, liabilities, and non-controlling interest, and 5) Recognizing and measuring any resulting goodwill or gain on bargain purchase. Fair values are measured as of the acquisition date and may be adjusted within one year of that date if values change.
IFRS 3 DEFINES BUSINESS COMBINATION AS ACQUIRER (PARENT) OBTAINS CONTROL
OVER THE ACQUIREE (SUBSIDIARY) USE ACQUISITION METHOD ONLY STEPS TO CONSIDER UNDER ACQUISITION METHOD: 1.IDENTIFY THE ACQUIRER (SYEMPRE ALAMIN MO MUNA KUNG SINO YUNG PARENT) 2.DETERMINE THE ACQUISITION DATE (TAPOS SUNOD MONG ALAMIN KUNG KELAN BA NAGKARON NG ACQUISITION) 3.DETERMINE THE CONSIDERATION (TIGNAN MO NA REN KUNG ANO YUNG IBABAYAD NIYA DON SA INACQUIRE NIYANG BUSINESS MO) 4.RECOGNIZE & MEASURE THE IDENTIFIABLE ASSETS ACQUIRED, LIABILITIES ASSUMED, ANY NCI IIN THE ACQUIREE. (AFTER MALAMAN KUNG SINO ANG PARENT ANT KUNG KELAN BINILI YUNG BUSINESS PATI KUNG ANO YUNG MGA IBABAYAD SAYO, SYEMPRE AALAMIN MO NA NGAYON YUNG FAIR VALUE NUNG BIBILHIN NIYA SAYO) 5.RECOGNIZE & MEASURE ANY RESULTING GOODWILL OR GAIN ON BARGAIN PURCHASE ON BUSINESS COMBINATION. (KAPAG NALAMAN NA KUNG ANO YUNG IBINAYAD AT FV NUNG BINILI, EDI TIGNAN MO KUNG ANG RESULT BA IS GOODWILL NA PASOK SA ASSET O BPG NA PASOK SA EQUITY) o CONSIDERATION < FVNA = GOODWILL o CONSIDERATION > FVNA = BPG
FV OF CONSIDERATION & NET ASSETS ACQUIRED SHALL BE MEASURED @ THEIR
ACQUISITION DATE FAIR VALUES. (KAYA IMPORTANTENG INAALAM KUNG KELAN YUNG ACQUISITION DATE EH KASE TINITIGNAN KUNG MAGKANO NABA YUNG FV NUNG CONSIDERATION AT NET ASSETS NUNG TIME NA INACQUIRE YUNG BUSINESS) SUCH FAIR VALUES ARE SUBJECT TO ONE (1)- YR MEASUREMENT PERIOD FROM ACQUISITION DATE. CHANGES IN VALUES WITHIN THAT PERIOD ARE CALLED MEASUREMENT PERIOD ADJUSTEMENTS AFFECTING GW (BPG). THUS, GENERALLY SHALL BE ACCOUNTED FOR RETROSPECTIVELY.