Acquisition method

10 min · IFRS 3
01 · Concept

All business combinations are accounted for using the acquisition method: identify the acquirer, measure consideration, recognise identifiable assets and liabilities at fair value, recognise goodwill or a bargain purchase gain.

  • 01Goodwill = Consideration + NCI + previously held interest − net identifiable assets at FV.
  • 02NCI measured at fair value OR proportionate share of net assets (choice per transaction).
  • 03Acquisition-related costs are expensed.