Chapter 10

Business combinations

1 Introduction

1.1 Background

1.2 IFRS 3 (as revised in 2008)

1.2.1 Changes introduced by the revised IFRS 3

1.2.2 Subsequent amendments to IFRS 3

1.2.3 Future developments

2 Scope of IFRS 3

2.1 Mutual entities

2.2 Arrangements out of scope of IFRS 3

2.2.1 Formation of a joint venture

2.2.2 Acquisition of an asset or a group of assets that does not constitute a business

2.2.3 Arrangements under common control

3 Identifying a Business Combination

3.1 Identifying a business combination

3.2 Definition of a business

3.2.1 Inputs, processes and outputs

3.2.2 ‘Capable of’ from the viewpoint of a market participant

3.2.3 Identifying business combinations

3.2.4 Development stage entities

3.2.5 Presence of goodwill

4 Acquisition Method of Accounting

4.1 Identifying the acquirer

4.2 Determining the acquisition date

5 Recognition and Measurement of Assets Acquired, Liabilities Assumed and Non-Controlling Interests

5.1 General principles

5.2 Recognising identifiable assets acquired and liabilities assumed

5.3 Acquisition-date fair values of identifiable assets acquired and liabilities assumed

5.4 Classifying or designating identifiable assets acquired and liabilities assumed

5.5 Recognising and measuring particular assets acquired and liabilities assumed

5.5.1 Operating leases

5.5.2 Intangible assets

5.5.2.A Examples of identifiable intangible assets

5.5.2.B Customer relationship intangible assets

5.5.2.C Combining an intangible asset with a related contract, ...

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