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Business Combinations

Batalova Veronika Viktorovna  (Accountant LLC "Formula of success", Krasnoiarsk city )

The accounting for business combinations in accordance with IFRS 3 is for using the purchase method. The buyer takes into account the acquired identifiable assets, liabilities and contingent liabilities of the acquiree at their fair values at the acquisition date, as well as goodwill, which is then tested for impairment. In accordance with IFRS 3, goodwill should be measured after initial recognition, taking into account any accumulated impairment losses. Goodwill is not amortized but must be tested for impairment at least once a year. In accordance with IFRS 3, negative goodwill should immediately be recognized by the buyer as income. The buyer takes into account the identifiable assets, liabilities and contingent liabilities at their fair values at the date of purchase, as well as goodwill, which is tested for impairment.

Keywords:the business, assets, depreciation, loss, liability.
 

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Citation link:
Batalova V. V. Business Combinations // Современная наука: актуальные проблемы теории и практики. Серия: ЭКОНОМИКА и ПРАВО. -2014. -№05-06. -С. 41-45
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