Page 7 - Finac2 Test 1 Slides - 2. Business Combinations

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Key Concepts

• Business combination:

• A business combination is a transaction or event in which an
acquirer obtains control of one or more businesses (IFRS 3

Appendix A).

• Control:

• An investor controls an investee when it is exposed to, or has
rights to variable returns from its involvement with the

investee and has the ability to affect those returns through its

power over the investee (IFRS 10.5).

• Business:

• An integrated set of activities and assets that is capable of

being conducted and managed for the purpose of providing a

return directly to investors or other owners, members or
participants (IFRS 3 Appendix A).

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