IFRS 3 (Revised) – Business Combinations Part 1 and IFRS 10 – Consolidated Financial Statements

The course demonstrates accounting for business combinations in accordance with International Financial Reporting Standards 3 and 10. IFRS 3 (revised) – IFRS 3, Business Combinations was issued in January 2008 as the second phase of a joint project with the Financial Accounting Standards Board (FASB), the US standards setter, and is designed to improve financial reporting and international convergence in this area. IFRS 3 (Revised) affects the first accounting period beginning on or after 1 July 2009. IFRS 10 establishes the principles for presenting and preparing consolidated financial statements when an entity controls one or more other entities. Consolidated financial statements are financial statements that present the assets, liabilities, equity, income, expenses and cash flows of a parent and its subsidiaries as those of a single economic entity. In this course we learn how to account for subsidiary and associate in the consolidated income statement and consolidated balance sheet as well as how to eliminate intra-group trading. We also learn how to calculate goodwill arising on acquisition.

Course Key Concepts: Acquirer/parent, Acquiree/subsidiary, Associate, Purchase consideration, Goodwill, Bargain purchase, Partial goodwill, Full goodwill, Control, Unrealized profit.