Group reorganisation
It may transfer subsidiaries, combine operations, alter ownership interests or separate businesses. Analysis depends on whether control is obtained, retained or lost, whether transactions are under common control and which financial statements are being prepared. Some common-control combinations are outside IFRS 3’s scope; avoid assuming a universal acquisition accounting result.
Worked example
A parent moves a subsidiary from one controlled intermediate entity to another without changing ultimate group control. The group assesses whether its consolidated position changes and analyses separate-entity accounting independently.
Common mistake
Assuming every reorganisation creates a new external acquisition and new group goodwill, or failing to distinguish separate from consolidated statements.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Supporting | September 2026–June 2027 |