Acquisition

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Last Updated on 28/02/2021 by 75385885

Acquisition is the process of an entity (acquirer) buying another entity (investee, target), the acquirer must record the event under the acquisition method (IFRS 3). This approach mandates a series of steps to record the acquisitions, which are:

  1. Measure any tangible assets and liabilities that were acquired
  2. Measure any intangible assets and liabilities that were acquired
  3. Measure the amount of any non-controlling interest in the acquired business
  4. Measure the amount of consideration paid to the seller
  5. Measure any goodwill or gain on the transaction
IFRS Synonyms:
Merger, Mergers, Purchase accounting, Pooling of interests