Business combination

Acquisitions and mergers - financial reporting - International Financial Reporting Standards - IFRS 3.

For the purposes of IFRS 3, a business combination is distinguished from an acquisition of assets.

In a business combination, an acquirer obtains control of one or more businesses.

The acquired business is accounted for under IFRS 3.

In an acquisition of assets, the acquired assets are accounted for under other appropriate accounting standards, often including IAS 38 Intangible Assets.

Transactions sometimes referred to as "true mergers" or "mergers of equals" are also business combinations for the purposes of IFRS 3.

See also

• Acquiree
• Acquirer
• Acquisition accounting
• Business
• Financial reporting
• IAS 38 - Intangible assets
• IFRS 3 - Business combinations
• Intangible assets
• International Accounting Standards Board (IASB)
• Merger
• Merger accounting

External links

• IFRS 3 - IAS Plus
• IFRS 3 full text