IFRS 3 – Business Combinations – Theory – 3

How shall the acquirer account for changes in the fair value of contingent consideration that are not measurement period adjustments?

Which of the following definitions agree with the term ‘acquisition date’?

Which of the following terms agrees with this definition: ‘An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.’

An asset is identifiable if:

Which of the following definitions agree with the term ‘non-controlling interest’?

IFRS 3 applies to business combination of entities or businesses under common control.

Which of the following are examples of how a business combination can be structured:

P acquired 75% of S three years ago. The amount of purchase consideration was $4,000. The amount of S’s identifiable net assets at the acquisition date was $3,400. What is the amount of goodwill that arose in this business combination?

P acquired 60% of S two years ago. The amount of purchase consideration was $7,000. The amount of S’s identifiable net assets at the acquisition date was $5,800. Since the acquisition, the amount of S’s retained earnings increased by $1,350. What is the amount of non-controlling interest that shall be reflected in P’s consolidated financial statements at the end of the current reporting period?