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CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Acquisition method

Who is the acquirer (.6)? ( Step 1)

• The entity that obtains control of the acquiree.

• See control as defined in IFRS 10.5-18

• Must determine the acquirer (.6)

• If X acquires 100% of Z’s shares

• X is the acquirer

• What if X combines / merges with Z?

• Who acquires control of whom?
• Per B13 – B18, acquirer is usually the entity that

• Pays cash (or other assets) / issues shares
• Is the bigger entity

• The owners of the previous entity who:

• Receive largest portion of voting rights
• Are able to appoint directors / management
• In the combined entity

• Acquirer is entity which applies IFRS 3

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