IFRS 3 REVISED BUSINESS COMBINATIONS

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This topic contains 5 replies, has 5 voices, and was last updated by Profile photo of MikeLittle MikeLittle 2 months, 2 weeks ago.

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    rania
    Participant

    Goodwill can only be SUBJECTIVELY ESTIMATED. what does subjective estimation means?


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    abdulhanan
    Participant

    subjective means the thing that change with subject. for example if we take opinion of different people about a beauty of a picture. different people give different opinion. it means beauty is subjective thing, because it change with (subject )persons hear. in this way goodwill is subjective. one person can ask brand valve of cocacola is this and other person give different figure.


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    fairlygladys
    Participant

    how it will relates to consol questions?
    purchases consideration + deferred consideration – fair value of net assets = goodwill
    when sould we restated the goodwill? is it related to IAS 10 + IAS 8 ?


    Profile photo of MikeLittle
    MikeLittle
    Keymaster

    Not IAS 8 but IFRS 10 yes. Fair value of consideration involves subjectivity as also does fair value of assets acquired as also does fair value of the non-controlling interest

    That’s why goodwill is subject to subjective estimate


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    adoallieu
    Participant

    How should Intangable Assets be treated in a business combination under the reversed standard of IFRS 3


    Profile photo of MikeLittle
    MikeLittle
    Keymaster

    A reversed standard? That’s a new one! Given that “standard” is an alternative word for “flag” are we talking here about an army in retreat and thus their standard is no longer advancing towards the enemy and is instead reversing back to safety?

    Ok, fun over! I assume that you meant “revised” and spellcheck took over

    Intangible separately identifiable assets should be fair valued!

    Do you need more?

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