Is It a Business Combination
Use IFRS 3 acquisition-method logic to distinguish a business combination from an asset acquisition.
Deal close The acquisition includes a license, customer contracts, five employees, and operating processes for $14 million. The business-versus-asset answer changes goodwill, fair value work, and transaction-cost treatment. IFRS 3 path Set acquired -> business definition -> acquisition method Legal form is not enough. IFRS 3 asks whether the acquired set includes inputs and substantive processes that can contribute to outputs. Shortcut Legal asset purchase means asset accounting. A deal memo that supports the accounting model. A business combination analysis follows the acquired capability, not just the legal label. Screen Step 1 The purchase agreement lists assets, but the acquired…
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