Identifying whether a business combination is present, the definition of a 'business' as per IFRS 3 Business Combinations should be applied. When acquisition of assets and assumption of liabilities do not constitute a business, the business shall be accounted for as an asset acquisition instead of a business combination. Describe the accounting for a transaction as an asset acquisition.

Answer rating: 100% (QA)

When an acquisition does not meet the criteria to be considered a business as per IFRS 3 its accounted for as an asset acquisition rather than a busin... View the full answer