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The acquirer shall identify the acquisition date, which is the date on which it obtains
control of the acquiree.
The cost of a business combination is the sum of the acquisition-date fair value of the
consideration transferred, and the amount of any non-controlling interests in the acquiree.
For each business combination, the acquirer shall measure any non-controlling interest in
the acquiree either at fair value or at the non-controlling interest’s proportionate share of
the acquiree’s identifiable net assets.
The costs incurred to issue equity or debt securities given up in exchange for the items
acquired are not included in the cost of a business combination.
Also, the cost of a business combination does not include the fees paid to legal advisers
and other professionals involved in the combination, or any costs incurred internally in this
connection. Such amounts are charged directly to the Group's consolidated profit or loss.
Any contingent consideration the Group transfers in exchange for the acquiree shall be
recognised at the acquisition-date fair value.
At the acquisition date, the acquirer shall recognise a gain or goodwill, measured as the
excess of the aggregate of the consideration transferred measured at acquisition-date fair
value and the amount of any non-controlling interest in the acquiree over the net of the
acquisition-date fair value amounts of the identifiable assets acquired and the liabilities
assumed. If consideration is lower, the resulting gain shall be recognised in profit or loss.
The consideration the acquirer transfers in exchange for the acquiree includes any asset or
liability resulting from a contingent consideration arrangement. The acquirer shall
recognise the acquisition-date fair value of contingent consideration as part of the
consideration transferred in exchange for the acquiree.
If the initial accounting for a business combination is incomplete by the end of the
reporting period in which the combination occurs, the acquirer shall report in its financial
statements provisional amounts for the items for which the accounting is incomplete, and
the provisional amounts may be adjusted in the period required to obtain the necessary
information. However, in no case shall the measurement period exceed one year from the
acquisition date. The effects of measurement period adjustments are recognised
retrospectively against goodwill, and comparative information for prior periods must be
revised as needed.
Subsequent changes that are not measurement period adjustments to the fair value of the
contingent consideration classified as an asset or a liability shall be recognised in
accordance with IAS 39, with any resulting gain or loss recognised either in profit or loss
or in other comprehensive income, unless the contingent consideration has been classified
as equity, in which case it shall not be remeasured and its subsequent settlement shall be
accounted for within equity.
After initial recognition at cost, goodwill acquired in a business combination is measured at
cost less accumulated impairment losses. The impairment tests are performed annually, or
more frequently if events or changes in circumstances indicate that the asset may have
become impaired.