Page 13 - Topic 1 - 1.3. Business Combinations

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS
Acquisition method

When did the acquisition occur (.8 &.9)? (Step 2)

• The date on which the acquirer obtains control of the

acquiree.

• A business combination occurs at the “acquisition date”

• Date that acquirer obtains control of acquiree

• Normally date consideration is transferred

• But could be earlier or later

• Look to substance of contractual agreements

• At the acquisition date in a business combination:

• Goodwill arises

• Must calculate the FV of identifiable assets and liabilities of acquiree

• Must measure NCIs

• Goodwill can only arise on the date that the control

threshold is crossed

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