The Grant Thornton International IFRS team has published a new guide, Navigating the accounting for business combinations—Applying IFRS 3 in practice. This publication is a guide to assist management with the application of IFRS 3 Business Combinations. IFRS 3 was revised in January 2008, as was IAS 27 Consolidated and Separate Financial Statements; these two standards apply to business combinations occurring on or after July 1, 2009. The revised standards made major changes to accounting for business combinations and for changes in ownership interests in subsidiaries and some related items.

As a result of the amendments, this guide aims to assist management in:

  • planning and negotiating the terms of the business combinations— identifying how alternative deal strategies can affect an acquirer’s reported results and financial position;
  • preparing to report the effects of the transaction—by noting key information requirements, accounting policy options and areas where specialist advice might be needed; and
  • applying IFRS 3—by summarizing the requirements, using extensive examples 
    to explain their application and highlighting possible problem areas.


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