In October 2018, the Board amended IFRS 3 by issuing Definition of a Business (Amendments to IFRS 3). This amended IFRS 3 to narrow and clarify the definition of a business, and to permit a simplified assessment of whether an acquired set of activities and assets is a group of assets rather than a business.

IFRS 3 establishes principles and requirements for how an acquirer in a business combination: determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination.

International Financial Reporting Standard 3 Business Combinations (IFRS 3) is set out in paragraphs 1–68 and Appendices A–C. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time they appear in the IFRS.

This article provides an introduction to IFRS® 3, Business Combinations and IFRS, 10 Consolidated Financial Statements, including piecemeal acquisitions and disposals.

2021年2月9日 · IFRS 3 establishes the accounting and reporting requirements (known as ‘the acquisition method’) for the acquirer in a business combination. The key steps in applying the acquisition method are summarised below:

IFRS 3®, Business Combinations was issued in January 2008 as the second phase of a joint project with the Financial Accounting Standards Board (FASB), the US standards setter, and is designed to improve financial reporting and international convergence in this area.

2024年11月18日 · Under IFRS 3, business combinations must be accounted for using the acquisition method, which comprises the following steps (IFRS 3.4-5): Identifying the acquirer. Determining the acquisition date. Recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the entity being acquired.

Our ‘Insights into IFRS 3’ series summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the most relevant features that could impact your business.

IFRS 3 (as revised in 2008) defines a business combination as “a transaction or other event in which an acquirer obtains control of one or more businesses”. In addition, IFRS 3 (as revised in 2008) refers to IFRS 10 for the meaning of the term ‘control’.

IFRS 3 Business Combinations provides guidance on the accounting treatment on the acquisition of a business. The 2024 Issued Standards include all amendments issued up to and including 31 December 2023.