Topic 4 Business combination 企业合并

AASB 3 –BUSINESS COMBINATION: Appendix A contains the defined term, while Appendix B contains application guidance.
A business combination is defined in Appendix A to AASB3 as: A transaction or other event in which an acquirer需方 obtains 获得control of one or more businesses.
Control: control exists when an investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect hose returns through its power over the investee.

The purpose of defining a business is to distinguish between the acquisition 收购of a group of assets that does not constitute构成 a business- such as a number of desks ,bookcases and filing cabinets- and the acquisition of a business.
A group of assets that does constitute a business is accounted for under AASB 3 AND must be capable of providing a return.
A group of assets that does not constitute a business is accounted for under AASB 116 ,AND measured at cost.

Acquistion method: 收购方法 1. Indentify the acquirer 收买人/需方 2. Determine the acquisition date 3. Recognize and measure the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree. 被收购者 4. Recognise and measure goodwill 商誉or a gain from a bargain purchase. 获得廉价的收入

The acquisition method is applied on the acquisition date, which is the date the acquirer obtains control of the acquiree. On this date, the business combination occurs. AASB3 also provides requirements for the subsequent measurement and accounting for assets and liabilities recognized initially at acquisition date.

Step 1: identifying the acquirer
Acquiree: 被收购者：The business or businesses that the acquirer obtains control of in a business combination.
Acquirer: 收购方： The entity that obtains control of the acquiree.

HOW TO identify an acquirer?
If A acquired more