Business Combinations

Business Combinations

1. Acquisition Method

   • 1. Identify acquirer- Entity that controls
   • 2. Determine acquisition date-obtaining control date
   • 3. Recognition of ass. + liab.
     • Acquirer may recognise some assets and liabilities that the acquiree had not previously recognised e.g. brand name. Acquirer must also recognise any non-controlling interest in acquiree
     • With contingent liabilities, acquirer must recognise even if it is not probably that outflow of economic beneficial resources will be required to settle obligation
   • 4. Measuring Goodwill