First Published: IFRS Boutique
Date: February 2018
By: Chris Ragkavas, BA, MA, FCCA, CGMA
StudySmart management consultant, senior finance & accounting tutor, IFRS technical expert
This is the fifth Part of the series of articles related to takeovers. You are kindly advised to read the previous Parts, before going through this final Part.
Closing remarks
IFRS 3 is applicable only when the acquirer indeed acquires a business as defined by the standard. In all other cases, the acquisition is treated as one of an asset, tangible or intangible.
Whereas in many cases the distinction between purchasing an asset and purchasing a business is rather straightforward, in other cases that may not hold true. In order for an investee to qualify as a business, it must comprise the following three elements:
Related Articles:
IFRS 3, Business combinations – A survival guide to the essentials of takeovers, Part I – READ MORE
IFRS 3, Business combinations – A survival guide to the essentials of takeovers, Part II – READ MORE
IFRS 3, Business combinations – A survival guide to the essentials of takeovers, Part III – READ MORE
IFRS 3, Business combinations – A survival guide to the essentials of takeovers, Part IV – READ MORE