Business Combination being one of the ways to expand the business, in what type of expansion does it belong?

It is the date which the acquirer obtains control of the acquiree?

The business or businesses that the acquirer obtains control of in a business combination?

It is an entity that obtains control of the acquiree

Statutory Consolidation is combining two or more existing legal entities into one new legal entity

Stock Acquisition means all of the company's assets are acquired directly from the company and existing liabilities are assumed.

Statutory Merger is the absorption of one or more existing legal entities by another existing company that continues as sole surviving entity.

According to PFRS 3, an acquirer should be identified and the use of purchase method are two of the specific requirements in accordance to the standard that shall govern business combination.

Non Disclosure of Information that enables users to evaluate changes in the carrying amount of goodwill is observe in the required procedures under PFRS 3.

Partial goodwill method has a non-controlling interest share in the goodwill

Under this method, goodwill arises when there is no non-controlling interest share in the goodwill.

Non- monetary assets includes property, plant and equipment, investments, licenses and patents.

Best measured by the present value of future cash flows.

Contingencies includes cost such as professional fees paid to accountants, legal advisers, valuers and other consultants to effect the combination.

Are recognized if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation ; and its fair value can be measured reliably.

Tangible Assets needs probability test more than reliability test

It arises when a gain on acquisition is recognized in profit or loss.

The acquirer shall classify the obligation to pay the continent consideration as:

The consideration transferred in a business combination shall be measured at its Carrying Amount.