How business combinations are accounted for when a parent already has an interest in an investee before it becomes a subsidiary. It also describes how goodwill is calculated and provides an illustrative example of how adjustments are made during the measurement period.
Mastering the art of consolidated financial statements
- How to account for business combinations between unrelated parties using the acquisition method under IFRS 3 / ASC 805. Also how to determine whether a subsidiary constitutes a business and what items to include in the consolidated financial statements.