Professional Documents
Culture Documents
Accounting for
business combinations
and consolidated
financial statements
Joint World Bank and IFRS Foundation train the
trainers workshop hosted by the ECCB,
30 April to 4 May 2012
Control
IFRS 10 Consolidated Financial Statements
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The views expressed in this presentation are those of the
presenter,
not necessarily those of the IASB or IFRS Foundation
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Objective 3
Information about
resources under the control of the group (assets)
and
claims against those resources
assists users to better assess the prospects for future
net cash inflows to the group which is useful in making
decisions about providing resources to the group.
The global financial crisis highlighted the importance of
enhancing disclosure requirements, in particular for
special purpose or structured entities.
IFRS 3
Business
Combinations
[[[
The views expressed in this presentation are those of the
presenter,
not necessarily those of the IASB or IFRS Foundation
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Introduction 18
Reacquired rights
measured at fair value based on remaining
contractual term ignoring the fair value effect of
renewal
Share-based payment transactions
replacement awards: measured in accordance with
IFRS 2
Assets held for sale
measured in accordance with IFRS 5 (ie fair value
less costs to sell)
Income taxes
deferred tax assets or liabilities arising from acquired
assets or liabilities accounted for using IAS 12
Employee benefits
accounted for using IAS 19
Indemnification assets
may not be recognised at fair value if it relates to an
item not recognised or measured in accordance with
IFRS 3
IFRS 10
Consolidated Financial
Statements
[[[
The views expressed in this presentation are those of the
presenter,
not necessarily those of the IASB or IFRS Foundation
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Effective Date 35
Profit or loss 20
Property, plant & equipment 20
Eliminate Investment
Proforma journal entry at acquisition is:
Goodwill 400
Non-controlling interest 200
As investment in B 1,000
Profit or loss 20
Property, plant & equipment 20
Allocate profit
Proforma journal entry allocating the NCI their share of
Bs profit for the year:
Calculation:
Profit 400
Depreciation adjust (20)
380
25% attributable to NCI 95
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Example:
NCI continued 48
IFRS 12
Disclosure of Interests in
Other Entities
[[[
The views expressed in this presentation are those of the
presenter,
not necessarily those of the IASB or IFRS Foundation
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Introduction 53
56
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Subsidiaries 57
57
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Unconsolidated structured entities 58
58
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Judgements and estimates 59
2011
IFRS Foundation | 30 Cannon
IFRS Foundation Street
| 30 | London
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Street 6XH | UK.
| London EC4Mwww.ifrs.org
6XH | UK | www.ifrs.org