Page 17 - Topic 1 - 1.3. Business Combinations

CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

Acquisition method

Measure the assets and liabilities acquired in the

business combination (Step 4)

• Measurement criteria:

• Assets and liabilities acquired should be measured at their fair
values at acquisition date.

• Remember:

• Restatement of assets and liabilities to fair value has deferred
tax implications for the business combination.

• The restatement of assets to fair value may also result in an
additional depreciation/amortisation charge in the

consolidated financial statements (and again deferred tax

implications)

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