IFRS 3: Business Combinations

Acquiring another company? Before applying the acquisition method, you first need to determine whether the acquired set meets the definition of a business. Our IFRS 3 CPE courses explain the key accounting requirements for business combinations under IFRS 3, Business Combinations.

This collection includes two self-study courses eligible for 2.0 CPE credits. The courses cover the assessment of whether an acquired set is a business, the application of the acquisition method, and the recognition and measurement of identifiable assets acquired and liabilities assumed. The collection also explains how goodwill is calculated in a business combination.

Topics covered include:

• Definition of a business under IFRS 3
• Business combination versus other acquisition accounting
• The acquisition method
• Recognition and measurement of identifiable assets and liabilities
• Purchase accounting considerations
• Calculation of goodwill

Further details

The collection begins before purchase accounting starts, with the threshold question in IFRS 3, Business Combinations: did the acquirer obtain a business? Learners consider the definition of a business and why an acquisition that fails that test follows a different accounting model from a business combination.

Once the transaction is within IFRS 3, the training walks through the acquisition method. That includes identifying the acquirer, recognizing and measuring the identifiable assets acquired and liabilities assumed, and understanding how fair value measurements affect the purchase accounting. The analysis culminates in the calculation of goodwill, tying the consideration transferred and recognized net assets together.

The courses are designed to help learners move from the legal description of an acquisition to the accounting conclusion - first determine what was acquired, then apply the correct recognition and measurement model.

Who will benefit

These IFRS 3 CPE courses are intended for accountants, transaction-accounting teams, controllers, and auditors involved in acquisitions or purchase accounting under IFRS. They are particularly useful when a transaction has just occurred and the team needs a practical refresher on the definition of a business, acquisition-method accounting, fair values, and goodwill.

Value proposition

Purchase both courses for $179 instead of $240 if purchased separately—a savings of $61.

Interested in group discounts? Contact us today to learn more.