Business Combinations and Goodwill
19.1 Business Combinations and Goodwill applies to accounting for business combinations. It provides guidance on identifying the acquirer, measuring the cost of the business combination and allocating that cost to the assets acquired and liabilities and provisions for contingent liabilities assumed. It also addresses accounting for goodwill both at the time of a business combination and subsequently.
Business Combinations and Goodwill – Exeptions
Intangible Assets other than Goodwill
18.1 Intangible Assets other than Goodwill applies to accounting for all intangible assets other than goodwill (see Business Combinations and Goodwill) and intangible assets held by an entity for sale in the ordinary course of business (see Inventories and Revenue).
Intangible Assets other than Goodwill – No physical substance
Property, Plant and Equipment (PPE)
PPE – Introduction
17.1 Property, Plant and Equipment applies to accounting for property, plant and equipment and accounting for investment property whose fair value cannot be measured reliably without undue cost or effort on an ongoing basis. Investment Property applies to investment property whose fair value can be measured reliably without undue cost or effort.
Investment property – Introduction
16.1 Investment property applies to accounting for investments in land or buildings that meet the definition of investment property (See Definition and initial recognition of investment property – Owner and Lessee) and some property interests held by a lessee under an operating lease (see Definition and initial recognition of investment property – Lessee) that are treated like investment property. Only investment property whose fair value can be measured reliably without undue cost or effort … Continue reading
Investments in Joint ventures describes:
- accounting for joint ventures in consolidated financial statements, and
- in the financial statements of an investor that is not a parent but that has a venturer’s interest in one or more joint ventures.
Accounting policy election in Separate financial statements establishes the requirements for accounting for a venturer’s interest in a joint venture in separate financial statements.
Investments in Associates describes:
- the accounting for associates in consolidated financial statements, and
- in the financial statements of an investor that is not a parent but that has an investment in one or more associates.
Accounting policy election in Separate financial statements establishes the requirements for accounting for associates in separate financial statements.
Entities under common control combined
9.28 Combined financial statements are a single set of financial statements of two or more entities under common control (as described in Exceptions to accounting for Business Combinations sub (a) of Business Combinations and Goodwill). Combined financial statements does not require combined financial statements to be prepared.
Combined Financial Statements comply in full to this section
Presentation of separate financial statements
9.24 It is not required to present separate financial statements for the parent entity or for the individual subsidiaries.
9.25 Separate financial statements are a second set of financial statements presented by an entity in addition to any of the following:
Required disclosures in consolidated financial statements
9.23 The following disclosures shall be made in consolidated financial statements:
- the fact that the statements are consolidated financial statements;
- the basis for concluding that control exists when the parent does not own, directly or indirectly through subsidiaries, more than half of the voting power;
- any difference in the reporting date of the financial statements of the parent and its subsidiaries used in the preparation of the consolidated financial statements; and
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Presentation of a group of entities as a single economical entity
9.13 The consolidated financial statements present financial information about the group as a single economic entity. In preparing consolidated financial statements, an entity shall:
- combine the financial statements of the parent and its subsidiaries line by line by adding together like items of assets, liabilities, equity, income and expenses.
- eliminate the carrying amount of the parent’s investment in each subsidiary and the parent’s portion of equity
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