The Grant Thornton International IFRS team has published a new guide, Intangible assets in a business combination—Identifying and valuing intangibles under IFRS 3 (the guide). The guide reflects the interaction of the requirements of IFRS 3 Business Combinations with those of IFRS 10 Consolidated Financial Statements and IFRS 13 Fair Value Measurement. It includes practical guidance on the detection of intangible assets in a business combination and also discusses the most common methods used in practice to estimate their fair value.


IFRS 3 requires an extensive analysis to be performed in order to accurately detect, recognize and measure at fair value the tangible and intangible assets and liabilities acquired in a business combination. The interaction of IFRS 3 with IFRS 10 and IFRS 13 means that this continues to be both a complex and a developing area of financial reporting. The accounting for intangible assets acquired in a business combination is particularly challenging for a number of reasons and as a result acquirers can expect reported amounts of intangible assets and goodwill to be closely scrutinized by investors, analysts and regulators.

The guide is organized into four sections as follows:

  • Section A explains the general procedures necessary to detect intangible assets in a business combination;
  • Section B explains fundamentals of fair value measurement as well as common methods to estimate the fair value of intangible assets;
  • Section C explains the characteristics of intangible assets that are frequently found in practice and common methods used to estimate their fair value; and 
  • Case study—Service provider.


Intangible assets in a business combination –Identifying and valuing intangibles under IFRS 3 follows this Adviser alert