O'Reilly logo

The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting by Francesco Bellandi

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

2.18 EXEMPTION FOR PAST BUSINESS COMBINATIONS

2.18.1 Exemption Explained

A past business combination is one that occurred before the transition date. An IFRS first-time adopter may restate all past business combinations under the version of IFRS 3 in force at the first IFRS reporting date, do so for only all that occurred after any earlier date, or avail itself of a special exemption for all past business combination. Whenever it uses IFRS 3 it must also use IAS 27, as appropriate.501 The rules of the last option are complex, and Exhibit 2-15 illustrates them for easier comprehension.

Exhibit 2-15 Exemption for Past Business Combinations

ch02fig003.eps
Planning Point: In choosing to use IFRS 3 retroactively, the company must be sure that it has all relevant data regarding past business combinations available, including contemporaneous fair value measurements and annual subsequent impairment tests of goodwill.
Comment: The Exhibit shows that the first threshold for recognition and measurement under IFRSs of assets and liabilities that the entity had recognized under previous GAAP is less stringent than that for assets and liabilities that it had not recognized. The former must qualify for recognition as assets and liabilities under IFRSs. The latter must do so in the statement of financial position of the acquiree. In certain circumstances, the former start from the amount measured ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required