Consolidations and business combinations are covered by IFRS 3, IFRS 10 and IFRS 12.
IFRS 3 Business Combinations outlines the accounting when an acquirer obtains control of a business through an acquisition or merger. Such business combinations are accounted for using the ‘acquisition method’, which generally requires assets acquired and liabilities assumed to be measured at their fair values at the acquisition date.
IFRS 10 Consolidated Financial Statements outlines the requirements for the preparation and presentation of consolidated financial statements and requires consolidation of entities that are controlled – control being exposure or rights to variable returns and the ability to affect those returns through power over the investee.
IFRS 12 Disclosure of Interests in Other Entities is a consolidated disclosure standard requiring a wide range of disclosures about an entity’s interests in subsidiaries, joint arrangements, associates and unconsolidated ‘structured entities’. Disclosures are presented as a series of objectives, with detailed guidance on satisfying those objectives.Download Event Brochure