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Sir just want to confirm that if for example there is an error in FV calculations at acquisition of subsidiary identified after more than 12 months of acquisition date we will adjust the goodwill right?
Hi,
No, any changes after 12 months are just taken through profit or loss.
Thanks
Alright sir
But then what this last line in para is trying to say?
If the initial accounting for a business combination can be determined only provisionally by the end of the first reporting period, the business combination is accounted for using provisional amounts. Adjustments to provisional amounts, and the recognition of newly identified asset and liabilities, must be made within the ‘measurement period’ where they reflect new information obtained about facts and circumstances that were in existence at the acquisition date. [IFRS 3.45] The measurement period cannot exceed one year from the acquisition date and no adjustments are permitted after one year except to correct an error in accordance with IAS 8. [IFRS 3.50]
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