ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø

Mergers and acquisitions � Buying a business

Accounting for combinations under IFRS® AccountingÌýStandards

event 18 Mar, 2021

As the world begins to emerge from the COVID-19 pandemic, merger and acquisition (M&A) activity is on the rise.

A significant early step for any business considering an acquisition is to look at the accounting treatment. Companies should be aware of the accounting requirementsÌýbeforeÌýthe transaction takes place so the implications can be considered as the deal is being negotiated.

In this podcast,ÌýAndrea SchriberÌýandÌýJulia LaPointeÌýlook at the relevant IFRS Standards, including IFRS 3ÌýBusiness Combinations, and address three key points that companies should consider in accounting for any acquisition.

  • Does the transaction meet the IFRS 3 definition of a business combination?
  • What are the key accounting considerations for the transaction?
  • What goes on to your balance sheet?

You can also catch up with the other podcasts in our M&A series:

Ìý

Listen onÌý >ÌýÌýÌý >ÌýÌýÌý>Ìý

The first step is really to determine whether for accounting purposes there is a business combination in the scope of IFRS 3 ... If not, you may have just acquired some assets, which results in a different accounting outcome.

Andrea Schriber

Another key step is to decide what is part of the business combination and what’s actually a separate transaction? For example, if there are already relationships between the acquirer and the acquiree � like revenue contracts or leases � the settlement of those relationships has to be accounted for separately from the business combination.

Julia LaPointe

Director, ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø International Standards Group

© 2025 ÀÖÓ㣨Leyu£©ÌåÓý¹ÙÍø IFRG Limited, a UK company, limited by guarantee. All rights reserved.