Page 14 - Topic 1 - 1.3. Business Combinations

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Acquisition method

Recognise the identifiable assets and liabilities

acquired in the business combination (Step 3)

• Recognition criteria : To qualify for recognition the:

• Assets and liabilities should meet the definitions of the

Conceptual Framework.

• Assets and liabilities must be part of what is exchanged in the

business combination (not a separate transaction)

• Exceptions:

• Contingent liabilities should be recognised if there is present

obligation and its fair value can be measured reliably.

• Recognise indemnification asset (debtor) only if

indemnification item (liability) is recognised on acquisition

date.

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