IFRS 3 Business Combinations summary - applies in 2024
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This video is a short summary of IFRS 15. If you need to learn more, please visit our website for great discussion with many practical advices on this standard.
The contents:
00:00 Introduction
00:38 Objective of IFRS 3
01:57 Business or assets&liabilities? Concentration test
05:14 Acquisition method: overview of 4 steps
06:27 How to recognize assets and liabilities
07:16 Non-controlling interest
08:50 Goodwill and gain on bargain purchase (negative goodwill)
This is just the short executive summary of IFRS 3 and does NOT replace the full standard - you can see the full text on IFRS Foundation's website.
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Пікірлер: 27
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Thank you, this lesson is very valuable!
Thank you so much ,it helped me a lot it's very simple when u explained it
It will be interesting to see how intangibles are recognized and measured if the acquiree did not recognized before.
Thank you
Thank you Soo much for your content
Thank you so much.
Your videos are very helpful. Could you make one on IAS 27?
one of the best youtubers
Hi, you didn't cover measurement exceptions given by IFRS 03.. please have a short video on these exceptions ( Reference: Paragraph 21 to 31 from IFRS)
Thanks for the great video, however I have a question, if the buyer repaid the Loan for the acquired entity, but the loan is needed to be repaid to the buyer by the acquired entity. After the acquisition, it becomes an IC loan. How can i account for this? Can i reduce the loan portion from the considerations transferred? If not, how can I setup the IC loan after acquisition? Many thanks!
Güzel bir sunum
Should we capitalize the goodwill as an intangible asset or it should be presented as GW in SOFP ? (11:29) Additionally I wanted to asked that “ Identifiable, non-monetary assets are called Intangible assets.” So what does the “non-monetary” means in this context ? Thanks a million in anticipation 😊
@binitshrestha3122
Жыл бұрын
Why would you capitalise a goodwill it's not even a capital expenditure its a revenue expenditure
Hi Silvia, when calculating the goodwill and we're trying to do the fair value adjustments of identifiable assets, how do we adjust for intangibles? is it just the same as normal assets? (FV - CA) * (1- tax rate)? if for example at acquisition date an intangible asset has a fair value amount but is not recognised in the financial statements will we still need to adjust?
@CPDbox
2 жыл бұрын
Yes, although I am not really happy with your formula, since you take care of tax effect in deferred tax calculation.
omg can you be my lecturer forever!
what if you purchase a business with net liabilities? let just assume consideration transferred 100, net liablities 80, and nothing else. using the equation consideration transferred - net idenfiable assets = 100 - (80) = 180. is this a goodwill?
@CPDbox
2 жыл бұрын
Yes. But then you need to test it for the impairment, because you must have a good reason to buy the business with negative net assets for such a price.
@tanwoeiyong5861
2 жыл бұрын
@@CPDbox thanks for reply silvia. :)
How can i get IAS kits?
Please reply if possible can entity preparing separate FS ' will record goodwill or only in consolidation FS it is shown or recorded
@CPDbox
Ай бұрын
Goodwill acquired in a business combination is only shown in the consolidated financial statements, not separate (because in separate, the investment in subsidiary is shown in one line).
🫀
Thank you