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.

Learning Objectives
  • Identify the criteria to classify investments in another organization.
  • Explore the preparation of simple consolidated financial statements.
  • Explore the equity accounting method in accounting for associates.
  • Explore the accounting for disposal of control in a subsidiary.
Last updated/reviewed: August 21, 2023
2 Reviews (5 ratings)


Anonymous Author
This course content was presented clearly and concisely, the slides did a good job of summarizing the material.

Member's Profile
The handwriting was ilegible. The test questions were unclear.

Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Introduction to IFRS 3 (Revised) - Business Combinations Part 1 and IFRS 10 - Consolidated Financial Statements4:50
  Acquirer Identification8:20
  Accounting Requirements8:42
  Group Statement of Financial Position15:52
  Group Statement of Financial Position Cont'd11:42
  Preparing the Group Statement of Financial Position15:22
  Consolidated SOPL and OCI Workings3:56
  IAS 28-Investments in Associates and Joint Ventures5:06
  Lecture Example 34:54
  IAS 27-Seperate Financial Statements4:04
  IFRS - Joint Arrangements15:28
  IFRS 3 (Revised) - Business Combinations Part 1 and IFRS 10 - Consolidated Financial Statements1:50:06
  Slides: IFRS 3 (Revised) - Business Combinations Part 1 and IFRS 10 - Consolidated Financial StatementsPDF
  IFRS 3 (Revised) - Business Combinations Part 1 and IFRS 10 - Consolidated Financial Statements Glossary/ IndexPDF