Accounting for business combinations can present considerable challenges for IFRS preparers. This two-day program provides a comprehensive understanding of, and hands-on practice in, applying the IFRS requirements on business combinations and on acquiring interests in joint arrangements and associates.

Our specialist instructors will explain and review the relevant parts of the following IFRS standards:

  • IFRS 3 Business Combinations
  • IFRS 10 Consolidated Financial Statements
  • IFRS 11 Joint Arrangements
  • IFRS 12 Disclosure of Interests in Other Entities
  • IAS 28 Investments in Associates and Joint Ventures

Using illustrative examples and real-world financial statements, the theory and practical application of the acquisition method of accounting for business combinations is demonstrated in an interactive group environment. The program also gives delegates a sound understanding of the requirements and methodology for accounting for acquiring and losing control of interests in joint arrangements and associates.

The course answers questions such as:

  • What constitutes a ‘business?
  • What is included and excluded when calculating the consideration transferred in a business combination?
  • How are contingent payments, subsequent fair value adjustments, contingent liabilities and intangible assets treated in a business combination?
  • How are goodwill and non-controlling interests measured?
  • How does IFRS 10's definition of control affect the scope of consolidated financial statements?
  • What adjustments are needed when applying the equity method of accounting?
  • How does IFRS 11 impact the treatment of joint arrangements?

Learning Objectives

  • Differentiate between the different levels of investment and identify the appropriate accounting treatment
  • Perform a purchase price allocation exercise and calculate goodwill by applying the rules in IFRS 3 Business Combinations
  • Evaluate the impact of contingent consideration and implement the special recognition and measurement rules for contingent liabilities
  • Demonstrate an understanding of IAS 36 by performing an impairment test on goodwill
  • Perform equity accounting for an associate or joint venture by applying IAS 28
  • Identify the two forms of joint arrangement and apply the appropriate accounting methods

If you haven't already registered for this course, you can book your place today on our website. If you have already registered, click on the Continue button at the bottom of the page to log in.

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Skill Level: Beginner