Practical application of IFRS3 - Business Combinations. By Allan Caldwell
IFRS reporting is well into its first season for UK quoted companies and those with December or March year ends have already reported. While the transition has forced companies to address a whole raft of new standards, not all will have had to look in detail at IFRS 3 - Business Combinations, if they have not made an acquisition in the period.
IFRS3 was designed to improve the transparency of acquisition accounting, an area where a lot of accounting manipulation has occurred in the past.