Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

Business Combinations

Ind AS - 103 - B. Indian Accounting Standards (Ind AS) - Companies Law - Ind AS - 103 - Indian Accounting Standard (Ind AS) 103 (This Indian Accounting Standard includes paragraphs set out in bold type and plain type which have equal authority. Paragraphs in bold type indicate the main principles.) Objective 1 The objective of this Indian Accounting Standard (Ind AS) is to improve the relevance, reliability and comparability of the information that a reporting entity provides in its financial st .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nancial statements to evaluate the nature and financial effects of the business combination. Scope 2 This Ind AS applies to a transaction or other event that meets the definition of a business combination. This Ind AS does not apply to: (a) the accounting for the formation of a joint arrangement in the financial statements of the joint arrangement itself. (b) the acquisition of an asset or a group of assets that does not constitute a business. In such cases the acquirer shall identify and recogn .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ly to the acquisition by an investment entity, as defined in Ind AS 110, Consolidated Financial Statements, of an investment in a subsidiary that is required to be measured at fair value through profit or loss. 2B Appendix C deals with accounting for combination of entities or businesses under common control. Identifying a business combination 3 An entity shall determine whether a transaction or other event is a business combination by applying the definition in this Ind AS, which requires that .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(b) determining the acquisition date; (c) recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree; and (d) recognising and measuring goodwill or a gain from a bargain purchase. Identifying the acquirer 6 For each business combination, one of the combining entities shall be identified as the acquirer. 7 The guidance in Ind AS 110 shall be used to identify the acquirer-the entity that obtains control of another entity, i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e acquirer legally transfers the consideration, acquires the assets and assumes the liabilities of the acquiree-the closing date. However, the acquirer might obtain control on a date that is either earlier or later than the closing date. For example, the acquisition date precedes the closing date if a written agreement provides that the acquirer obtains control of the acquiree on a date before the closing date. An acquirer shall consider all pertinent facts and circumstances in identifying the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ecognition conditions 11 To qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Framework for the Preparation and Presentation of Financial Statements in accordance with Indian Accounting Standards issued by the Institute of Chartered Accountants of India at the acquisition date. For example, costs the acquirer expects but is not obliged to incur in the future to ef .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ired and liabilities assumed must be part of what the acquirer and the acquiree (or its former owners) exchanged in the business combination transaction rather than the result of separate transactions. The acquirer shall apply the guidance in paragraphs 51-53 to determine which assets acquired or liabilities assumed are part of the exchange for the acquiree and which, if any, are the result of separate transactions to be accounted for in accordance with their nature and the applicable Ind AS. 13 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ated costs to expense. 14 Paragraphs B28-B40 provide guidance on recognising operating leases and intangible assets. Paragraphs 22-28 specify the types of identifiable assets and liabilities that include items for which this Ind AS provides limited exceptions to the recognition principle and conditions. Classifying or designating identifiable assets acquired and liabilities assumed in a business combination 15 At the acquisition date, the acquirer shall classify or designate the identifiable ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gnations that the acquirer shall make on the basis of the pertinent conditions as they exist at the acquisition date include but are not limited to: (a) classification of particular financial assets and liabilities as measured at fair value through profit or loss or at amortised cost, or as a financial asset measured at fair value through other comprehensive income in accordance with Ind AS 109, Financial Instruments; (b) designation of a derivative instrument as a hedging instrument in accordan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

04, Insurance Contracts. The acquirer shall classify those contracts on the basis of the contractual terms and other factors at the inception of the contract (or, if the terms of the contract have been modified in a manner that would change its classification, at the date of that modification, which might be the acquisition date). Measurement principle 18 The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair values. 19 For each bus .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

acquisitiondate fair values, unless another measurement basis is required by Ind AS. 20 Paragraphs 24-31 specify the types of identifiable assets and liabilities that include items for which this Ind AS provides limited exceptions to the measurement principle. Exceptions to the recognition or measurement principles 21 This Ind AS provides limited exceptions to its recognition and measurement principles. Paragraphs 22-31 specify both the particular items for which exceptions are provided and the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ciple Contingent liabilities 22 Ind AS 37, Provisions, Contingent Liabilities and Contingent Assets, defines a contingent liability as: (a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity; or (b) a present obligation that arises from past events but is not recognised because: (i) it is not probable that an outflow of resources embody .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iably. Therefore, contrary to Ind AS 37, the acquirer recognises a contingent liability assumed in a business combination at the acquisition date even if it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Paragraph 56 provides guidance on the subsequent accounting for contingent liabilities. Exceptions to both the recognition and measurement principles Income taxes 24 The acquirer shall recognise and measure a deferred tax asset .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arrangements in accordance with Ind AS 19, Employee Benefits. Indemnification assets 27 The seller in a business combination may contractually indemnify the acquirer for the outcome of a contingency or uncertainty related to all or part of a specific asset or liability. For example, the seller may indemnify the acquirer against losses above a specified amount on a liability arising from a particular contingency; in other words, the seller will guarantee that the acquirer s liability will not exc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

recognise the indemnification asset at the acquisition date measured at its acquisition-date fair value. For an indemnification asset measured at fair value, the effects of uncertainty about future cash flows because of collectibility considerations are included in the fair value measure and a separate valuation allowance is not necessary (paragraph B41 provides related application guidance). 28 In some circumstances, the indemnification may relate to an asset or a liability that is an exception .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

asured using assumptions consistent with those used to measure the indemnified item, subject to management s assessment of the collectibility of the indemnification asset and any contractual limitations on the indemnified amount. Paragraph 57 provides guidance on the subsequent accounting for an indemnification asset. Exceptions to the measurement principle Reacquired rights 29 The acquirer shall measure the value of a reacquired right recognised as an intangible asset on the basis of the remain .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

quirer in accordance with the method in Ind AS 102, Share-based Payment, at the acquisition date. (This Ind AS refers to the result of that method as the market-based measure of the share-based payment transaction.) Assets held for sale 31 The acquirer shall measure an acquired non-current asset (or disposal group) that is classified as held for sale at the acquisition date in accordance with Ind AS 105, Noncurrent Assets Held for Sale and Discontinued Operations, at fair value less costs to sel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

his Ind AS; and (iii) in a business combination achieved in stages (see paragraphs 41 and 42), the acquisition-date fair value of the acquirer s previously held equity interest in the acquiree. (b) the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed measured in accordance with this Ind AS. 33 In a business combination in which the acquirer and the acquiree (or its former owners) exchange only equity interests, the acquisition-date fair value of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fair value of the acquirer s interest in the acquiree in place of the acquisition-date fair value of the consideration transferred (paragraph 32(a)(i)). Paragraphs B46-B49 provide related application guidance. Bargain purchases 34 In extremely rare circumstances, an acquirer will make a bargain purchase in a business combination in which the amount in paragraph 32(b) exceeds the aggregate of the amounts specified in paragraph 32(a). If that excess remains after applying the requirements in para .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

change the amount of a recognised gain) on a bargain purchase. 36 Before recognising a gain on a bargain purchase, the acquirer shall determine whether there exists clear evidence of the underlying reasons for classifying the business combination as a bargain purchase. If such evidence exists, the acquirer shall reassess whether it has correctly identified all of the assets acquired and all of the liabilities assumed and shall recognise any additional assets or liabilities that are identified i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

measurements appropriately reflect consideration of all available information as of the acquisition date. 36A If there does not exist clear evidence of the underlying reasons for classifying the business combination as a bargain purchase, the acquirer shall apply the requirements of reassessment and review described in paragraph 36. The excess, if any, as determined in accordance with paragraph 32 after applying the said requirements of paragraph 36, shall be recognised directly in equity as ca .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

included in consideration transferred in the business combination shall be measured in accordance with paragraph 30 rather than at fair value.) Examples of potential forms of consideration include cash, other assets, a business or a subsidiary of the acquirer, contingent consideration, ordinary or preference equity instruments, options, warrants and member interests of mutual entities. 38 The consideration transferred may include assets or liabilities of the acquirer that have carrying amounts .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erred to the acquiree rather than to its former owners), and the acquirer therefore retains control of them. In that situation, the acquirer shall measure those assets and liabilities at their carrying amounts immediately before the acquisition date and shall not recognise a gain or loss in profit or loss on assets or liabilities it controls both before and after the business combination. Contingent consideration 39 The consideration the acquirer transfers in exchange for the acquiree includes a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

lity in paragraph 11 of Ind AS 32, Financial Instruments: Presentation. The acquirer shall classify as an asset a right to the return of previously transferred consideration if specified conditions are met. Paragraph 58 provides guidance on the subsequent accounting for contingent consideration. Additional guidance for applying the acquisition method to particular types of A business combination achieved in stages 41 An acquirer sometimes obtains control of an acquiree in which it held an equity .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ously held equity interest in the acquiree at its acquisition-date fair value and recognise the resulting gain or loss, if any, in profit or loss or other comprehensive income, as appropriate. In prior reporting periods, the acquirer may have recognised changes in the value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was recognised in other comprehensive income shall be recognised on the same basis as would be required if the acquirer had disposed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

viously kept the acquirer from controlling an acquiree in which the acquirer held the majority voting rights. (c) The acquirer and acquiree agree to combine their businesses by contract alone. The acquirer transfers no consideration in exchange for control of an acquiree and holds no equity interests in the acquiree, either on the acquisition date or previously. Examples of achieved by contract alone include bringing two businesses together in a stapling arrangement or forming a dual listed corp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erest. Measurement period 45 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. During the measurement period, the acquirer shall retrospectively adjust the provisional amounts recognised at the acquisition date to reflect new information obtained about facts and circumstances that exist .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on it was seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. However, the measurement period shall not exceed one year from the acquisition date. 46 The measurement period is the period after the acquisition date during which the acquirer may adjust the provisional amounts recognised for a business combination. The measurement period provides the acquirer with a reasonable time to obtain the information necessary to id .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. 47 The acquirer shall consider all pertinent factors in determining whether information obtained after the acquisition date should result in an adjustment to the provisional amounts recognised or whether that information results from events that occurred after the acquisition date. Pertinent factors include the date when additional information is obtained and whether the acquirer can identify a reason for a change to provisional amounts. Information that is obtained shortly after the acquisiti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in the provisional amount recognised for an identifiable asset (liability) by means of a decrease (increase) in goodwill. However, new information obtained during the measurement period may sometimes result in an adjustment to the provisional amount of more than one asset or liability. For example, the acquirer might have assumed a liability to pay damages related to an accident in one of the acquiree s facilities, part or all of which are covered by the acquiree s liability insurance policy. If .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ceeds the amount previously recognized as goodwill that excess shall be accounted for in accordance with paragraph 34 or paragraph 36A as applicable. 49 During the measurement period, the acquirer shall recognise adjustments to the provisional amounts as if the accounting for the business combination had been completed at the acquisition date. Thus, the acquirer shall revise comparative information for prior periods presented in financial statements as needed, including making any change in depr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the business combination began, or they may enter into an arrangement during the negotiations that is separate from the business combination. In either situation, the acquirer shall identify any amounts that are not part of what the acquirer and the acquiree (or its former owners) exchanged in the business combination, ie amounts that are not part of the exchange for the acquiree. The acquirer shall recognise as part of applying the acquisition method only the consideration transferred for the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that are not to be included in applying the acquisition method: (a) a transaction that in effect settles pre-existing relationships between the acquirer and acquiree; (b) a transaction that remunerates employees or former owners of the acquiree for future services; and (c) a transaction that reimburses the acquiree or its former owners for paying the acquirer s acquisition-related costs. Paragraphs B50-B62 provide related application guidance Acquisition-related costs 53 Acquisition-related cost .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

h one exception. The costs to issue debt or equity securities shall be recognised in accordance with Ind AS 32 and Ind AS 109. Subsequent measurement and accounting 54 In general, an acquirer shall subsequently measure and account for assets acquired, liabilities assumed or incurred and equity instruments issued in a business combination in accordance with other applicable Ind ASs for those items, depending on their nature. However, this Ind AS provides guidance on subsequently measuring and acc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t was granted. An acquirer that subsequently sells a reacquired right to a third party shall include the carrying amount of the intangible asset in determining the gain or loss on the sale. Contingent liabilities 1[56 After initial recognition and until the liability is settled, cancelled or expires, the acquirer shall measure a contingent liability recognised in a business combination at the higher of: (a) the amount that would be recognised in accordance with Ind AS 37; and (b) the amount init .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mnification asset that is not subsequently measured at its fair value, management s assessment of the collectibility of the indemnification asset. The acquirer shall derecognise the indemnification asset only when it collects the asset, sells it or otherwise loses the right to it. Contingent consideration 58 Some changes in the fair value of contingent consideration that the acquirer recognises after the acquisition date may be the result of additional information that the acquirer obtained afte .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t measurement period adjustments as follows: (a) Contingent consideration classified as equity shall not be remeasured and its subsequent settlement shall be accounted for within equity. (b) Other contingent consideration that: (i) is within the scope of Ind AS 109 shall be measured at fair value at each reporting date and changes in fair value shall be recognised in profit or loss in accordance with Ind AS 109. (ii) is not within the scope of Ind AS 109 shall be measured at fair value at each r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion specified in paragraphs B64-B66. 61 The acquirer shall disclose information that enables users of its financial statements to evaluate the financial effects of adjustments recognised in the current reporting period that relate to that occurred in the period or previous reporting periods. 62 To meet the objective in paragraph 61, the acquirer shall disclose the information specified in paragraph B67. 63 If the specific disclosures required by this and other Ind ASs do not meet the objectives .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the acquirer obtains control of in a business combination. acquirer The entity that obtains control of the acquiree. acquisition date The date on which the acquirer obtains control of the acquiree. business An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of dividends, lower costs or other economic benefits directly to investors or other owners, members or participants. business combination A transact .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

y give the acquirer the right to the return of previously transferred consideration if specified conditions are met. equity interests For the purposes of this Ind AS, equity interests is used broadly to mean ownership interests of investor-owned entities and owner, member or participant interests of mutual entities. fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement da .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the entity intends to do so; or (b) arises from contractual or other legal rights, regardless of whether those rights are transferable or separable from the entity or from other rights and obligations. intangible asset An identifiable non-monetary asset without physical substance. mutual entity An entity, other than an investor-owned entity, that provides dividends, lower costs or other economic benefits directly to its owners, members or participants. For example, a mutual insurance company, a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion (application of paragraph 3) B5 This Ind AS defines a business combination as a transaction or other event in which an acquirer obtains control of one or more businesses. An acquirer might obtain control of an acquiree in a variety of ways, for example: (a) by transferring cash, cash equivalents or other assets (including net assets that constitute a business); (b) by incurring liabilities; (c) by issuing equity interests; (d) by providing more than one type of consideration; or (e) without .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

; (c) all of the combining entities transfer their net assets, or the owners of those entities transfer their equity interests, to a newly formed entity (sometimes referred to as a roll-up or put-together transaction); or (d) a group of former owners of one of the combining entities obtains control of the combined entity. Definition of a business (application of paragraph 3) B7 A business consists of inputs and processes applied to those inputs that have the ability to create outputs. Although b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Process: Any system, standard, protocol, convention or rule that when applied to an input or inputs, creates or has the ability to create outputs. Examples include strategic management processes, operational processes and resource management processes. These processes typically are documented, but an organised workforce having the necessary skills and experience following rules and conventions may provide the necessary processes that are capable of being applied to inputs to create outputs. (Acc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tial elements-inputs and processes applied to those inputs, which together are or will be used to create outputs. However, a business need not include all of the inputs or processes that the seller used in operating that business if market participants are capable of acquiring the business and continuing to produce outputs, for example, by integrating the business with their own inputs and processes. B9 The nature of the elements of a business varies by industry and by the structure of an entity .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to determine whether the set is a business. Those factors include, but are not limited to, whether the set: (a) has begun planned principal activities; (b) has employees, intellectual property and other inputs and processes that could be applied to those inputs; (c) is pursuing a plan to produce outputs; and (d) will be able to obtain access to customers that will purchase the outputs. Not all of those factors need to be present for a particular integrated set of activities and assets in the de .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ar set of assets and activities in which goodwill is present shall be presumed to be a business. However, a business need not have goodwill. Identifying the acquirer (application of paragraphs 6 and 7) B13 The guidance in Ind AS 110, Consolidated Financial Statements, shall be used to identify the acquirer-the entity that obtains control of the acquiree. If a business combination has occurred but applying the guidance in Ind AS 110 does not clearly indicate which of the combining entities is the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erse acquisitions , the issuing entity is the acquiree. Paragraphs B19-B27 provide guidance on accounting for reverse acquisitions. Other pertinent facts and circumstances shall also be considered in identifying the acquirer in a business combination effected by exchanging equity interests, including: (a) the relative voting rights in the combined entity after the business combination- The acquirer is usually the combining entity whose owners as a group retain or receive the largest portion of t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rganised group of owners holds the largest minority voting interest in the combined entity. (c) the composition of the governing body of the combined entity-The acquirer is usually the combining entity whose owners have the ability to elect or appoint or to remove a majority of the members of the governing body of the combined entity. (d) the composition of the senior management of the combined entity-The acquirer is usually the combining entity whose (former) management dominates the management .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ntities, determining the acquirer shall include a consideration of, among other things, which of the combining entities initiated the combination, as well as the relative size of the combining entities. B18 A new entity formed to effect a business combination is not necessarily the acquirer. If a new entity is formed to issue equity interests to effect a business combination, one of the combining entities that existed before the business combination shall be identified as the acquirer by applyin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

transaction to be considered a reverse acquisition. For example, reverse acquisitions sometimes occur when a private operating entity wants to become a public entity but does not want to register its equity shares. To accomplish that, the private entity will arrange for a public entity to acquire its equity interests in exchange for the equity interests of the public entity. In this example, the public entity is the legal acquirer because it issued its equity interests, and the private entity i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt principles in this Ind AS, including the requirement to recognise goodwill, apply. Measuring the consideration transferred B20 In a reverse acquisition, the accounting acquirer usually issues no consideration for the acquiree. Instead, the accounting acquiree usually issues its equity shares to the owners of the accounting acquirer. Accordingly, the acquisition-date fair value of the consideration transferred by the accounting acquirer for its interest in the accounting acquiree is based on t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a reverse acquisition are issued under the name of the legal parent (accounting acquiree) but described in the notes as a continuation of the financial statements of the legal subsidiary (accounting acquirer), with one adjustment, which is to adjust retroactively the accounting acquirer s legal capital to reflect the legal capital of the accounting acquiree. That adjustment is required to reflect the capital of the legal parent (the accounting acquiree). Comparative information presented in thos .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the assets and liabilities of the legal parent (the accounting acquiree) recognised and measured in accordance with this Ind AS. (c) the retained earnings and other equity balances of the legal subsidiary (accounting acquirer) before the business combination. (d) the amount recognised as issued equity interests in the consolidated financial statements determined by adding the issued equity interest of the legal subsidiary (the accounting acquirer) outstanding immediately before the business com .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ares of the legal parent (the accounting acquiree) issued in the reverse acquisition. (e) the non-controlling interest s proportionate share of the legal subsidiary s (accounting acquirer s) pre-combination carrying amounts of retained earnings and other equity interests as discussed in paragraphs B23 and B24. Non-controlling interest B23 In a reverse acquisition, some of the owners of the legal acquiree (the accounting acquirer) might not exchange their equity interests for equity interests of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ree for accounting purposes, the owners of the legal acquirer have an interest in the results and net assets of the combined entity. B24 The assets and liabilities of the legal acquiree are measured and recognised in the consolidated financial statements at their pre-combination carrying amounts (see paragraph B22(a)). Therefore, in a reverse acquisition the non-controlling interest reflects the non-controlling shareholders proportionate interest in the pre-combination carrying amounts of the le .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

erage number of ordinary shares2 outstanding (the denominator of the earnings per share calculation) during the period in which the reverse acquisition occurs: (a) the number of ordinary shares outstanding from the beginning of that period to the acquisition date shall be computed on the basis of the weighted average number of ordinary shares of the legal acquiree (accounting acquirer) outstanding during the period multiplied by the exchange ratio established in the merger agreement; and (b) the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ders in each of those periods by (b) the legal acquiree s historical weighted average number of ordinary shares outstanding multiplied by the exchange ratio established in the acquisition agreement Recognising particular assets acquired and liabilities assumed (application of paragraphs 10-13) Operating leases B28 The acquirer shall recognise no assets or liabilities related to an operating lease in which the acquiree is the lessee except as required by paragraphs B29 and B30. B29 The acquirer s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ble asset may be associated with an operating lease, which may be evidenced by market participants willingness to pay a price for the lease even if it is at market terms. For example, a lease of gates at an airport or of retail space in a prime shopping area might provide entry into a market or other future economic benefits that qualify as identifiable intangible assets, for example, as a customer relationship. In that situation, the acquirer shall recognise the associated identifiable intangib .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s. For example: (a) an acquiree leases a manufacturing facility under an operating lease that has terms that are favourable relative to market terms. The lease terms explicitly prohibit transfer of the lease (through either sale or sublease). The amount by which the lease terms are favourable compared with the terms of current market transactions for the same or similar items is an intangible asset that meets the contractual-legal criterion for recognition separately from goodwill, even though t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

orting purposes if the useful lives of those assets are similar. (c) an acquiree owns a technology patent. It has licensed that patent to others for their exclusive use outside the domestic market, receiving a specified percentage of future foreign revenue in exchange. Both the technology patent and the related licence agreement meet the contractual-legal criterion for recognition separately from goodwill even if selling or exchanging the patent and the related licence agreement separately from .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

o sell, license or otherwise exchange it. An acquired intangible asset meets the separability criterion if there is evidence of exchange transactions for that type of asset or an asset of a similar type, even if those transactions are infrequent and regardless of whether the acquirer is involved in them. For example, customer and subscriber lists are frequently licensed and thus meet the separability criterion. Even if an acquiree believes its customer lists have characteristics different from o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ity meets the separability criterion if it is separable in combination with a related contract, identifiable asset or liability. For example: (a) market participants exchange deposit liabilities and related depositor relationship intangible assets in observable exchange transactions. Therefore, the acquirer should recognise the depositor relationship intangible asset separately from goodwill. (b) an acquiree owns a registered trademark and documented but unpatented technical expertise used to ma .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cquire a right that it had previously granted to the acquiree to use one or more of the acquirer s recognised or unrecognised assets. Examples of such rights include a right to use the acquirer s trade name under a franchise agreement or a right to use the acquirer s technology under a technology licensing agreement. A reacquired right is an identifiable intangible asset that the acquirer recognises separately from goodwill. Paragraph 29 provides guidance on measuring a reacquired right and para .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

value of an acquired intangible asset that is not identifiable as of the acquisition date. For example, an acquirer may attribute value to the existence of an assembled workforce, which is an existing collection of employees that permits the acquirer to continue to operate an acquired business from the acquisition date. An assembled workforce does not represent the intellectual capital of the skilled workforce-the (often specialised) knowledge and experience that employees of an acquiree bring t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hemselves assets at the acquisition date, the acquirer does not recognise them separately from goodwill. The acquirer should not subsequently reclassify the value of those contracts from goodwill for events that occur after the acquisition date. However, the acquirer should assess the facts and circumstances surrounding events occurring shortly after the acquisition to determine whether a separately recognisable intangible asset existed at the acquisition date. B39 After initial recognition, an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gible asset nor restrict the assumptions used in measuring the fair value of an intangible asset. For example, the acquirer would take into account the assumptions that market participants would use when pricing the intangible asset, such as expectations of future contract renewals, in measuring fair value. It is not necessary for the renewals themselves to meet the identifiability criteria. (However, see paragraph 29, which establishes an exception to the fair value measurement principle for re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ance as of the acquisition date for assets acquired in a business combination that are measured at their acquisition-date fair values because the effects of uncertainty about future cash flows are included in the fair value measure. For example, because this Ind AS requires the acquirer to measure acquired receivables, including loans, at their acquisition-date fair values in accounting for a business combination, the acquirer does not recognise a separate valuation allowance for the contractual .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f an operating lease are either favourable or unfavourable when compared with market terms as paragraph B29 requires for leases in which the acquiree is the lessee. Assets that the acquirer intends not to use or to use in a way that is different from the way other market participants would use them B43 To protect its competitive position, or for other reasons, the acquirer may intend not to use an acquired non-financial asset actively, or it may not intend to use the asset according to its highe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ing interest in an acquiree B44 This Ind AS allows the acquirer to measure a non-controlling interest in the acquiree at its fair value at the acquisition date. Sometimes an acquirer will be able to measure the acquisition-date fair value of a non-controlling interest on the basis of a quoted price in an active market for the equity shares (ie those not held by the acquirer). In other situations, however, a quoted price in an active market for the equity shares will not be available. In those si .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

discount) in the per-share fair value of the non-controlling interest if market participants would take into account such a premium or discount when pricing the non-controlling interest. Measuring goodwill or a gain from a bargain purchase Measuring the acquisition-date fair value of the acquirer s interest in the acquiree using valuation techniques (application of paragraph 33) B46 In a business combination achieved without the transfer of consideration, the acquirer must substitute the acquis .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

than the fair value of the member interests transferred by the acquirer. In that situation, paragraph 33 requires the acquirer to determine the amount of goodwill by using the acquisition-date fair value of the acquiree s equity interests instead of the acquisition-date fair value of the acquirer s equity interests transferred as consideration. In addition, the acquirer in a combination of mutual entities shall recognise the acquiree s net assets as a direct addition to capital or equity in its .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

dividends. The portion of patronage dividends allocated to each member is often based on the amount of business the member did with the mutual entity during the year. B49 A fair value measurement of a mutual entity should include the assumptions that market participants would make about future member benefits as well as any other relevant assumptions market participants would make about the mutual entity. For example, a present value technique may be used to measure the fair value of a mutual e .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he exchange for the acquiree or whether the transaction is separate from the business combination: (a) the reasons for the transaction-Understanding the reasons why the parties to the combination (the acquirer and the acquiree and their owners, directors and managers-and their agents) entered into a particular transaction or arrangement may provide insight into whether it is part of the consideration transferred and the assets acquired or liabilities assumed. For example, if a transaction is arr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rovide insight into whether it is part of the exchange for the acquiree. For example, a transaction or other event that is initiated by the acquirer may be entered into for the purpose of providing future economic benefits to the acquirer or combined entity with little or no benefit received by the acquiree or its former owners before the combination. On the other hand, a transaction or arrangement initiated by the acquiree or its former owners is less likely to be for the benefit of the acquire .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

acquirer or the combined entity. If so, the acquiree or its former owners before the business combination are likely to receive little or no benefit from the transaction except for benefits they receive as part of the combined entity. Effective settlement of a pre-existing relationship between the acquirer and acquiree in a business combination (application of paragraph 52(a)) B51 The acquirer and acquiree may have a relationship that existed before they contemplated the business combination, re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ractual relationship, the lesser of (i) and (ii): (i) the amount by which the contract is favourable or unfavourable from the perspective of the acquirer when compared with terms for current market transactions for the same or similar items. (An unfavourable contract is a contract that is unfavourable in terms of current market terms. It is not necessarily an onerous contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ements. B53 A pre-existing relationship may be a contract that the acquirer recognises as a reacquired right. If the contract includes terms that are favourable or unfavourable when compared with pricing for current market transactions for the same or similar items, the acquirer recognises, separately from the business combination, a gain or loss for the effective settlement of the contract, measured in accordance with paragraph B52. Arrangements for contingent payments to employees or selling s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

B55 If it is not clear whether an arrangement for payments to employees or selling shareholders is part of the exchange for the acquiree or is a transaction separate from the business combination, the acquirer should consider the following indicators: (a) Continuing employment-The terms of continuing employment by the selling shareholders who become key employees may be an indicator of the substance of a contingent consideration arrangement. The relevant terms of continuing employment may be in .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt coincides with or is longer than the contingent payment period, that fact may indicate that the contingent payments are, in substance, remuneration. (c) Level of remuneration-Situations in which employee remuneration other than the contingent payments is at a reasonable level in comparison with that of other key employees in the combined entity may indicate that the contingent payments are additional consideration rather than remuneration. (d) Incremental payments to employees-If selling shar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

gement. For example, if the selling shareholders who owned substantially all of the shares in the acquiree continue as key employees, that fact may indicate that the arrangement is, in substance, a profit sharing arrangement intended to provide remuneration for post-combination services. Alternatively, if selling shareholders who continue as key employees owned only a small number of shares of the acquiree and all selling shareholders receive the same amount of contingent consideration on a per- .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

h, that fact may suggest that the contingent payments are additional consideration. Alternatively, if the contingent payment formula is consistent with prior profit-sharing arrangements, that fact may suggest that the substance of the arrangement is to provide remuneration. (g) Formula for determining consideration-The formula used to determine the contingent payment may be helpful in assessing the substance of the arrangement. For example, if a contingent payment is determined on the basis of a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

such as agreements not to compete, executory contracts, consulting contracts and property lease agreements) and the income tax treatment of contingent payments may indicate that contingent payments are attributable to something other than consideration for the acquiree. For example, in connection with the acquisition, the acquirer might enter into a property lease arrangement with a significant selling shareholder. If the lease payments specified in the lease contract are significantly below mar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

contingent consideration in the business combination. Acquirer share-based payment awards exchanged for awards held by the acquiree s employees (application of paragraph 52(b)) B56 An acquirer may exchange its share-based payment awards3 (replacement awards) for awards held by employees of the acquiree. Exchanges of share options or other sharebased payment awards in conjunction with a business combination are accounted for as modifications of share-based payment awards in accordance with Ind AS .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d to do so, all of the market-based measure of the replacement awards shall be recognised as remuneration cost in the post-combination financial statements in accordance with Ind AS 102. That is to say, none of the market-based measure of those awards shall be included in measuring the consideration transferred in the business combination. The acquirer is obliged to replace the acquiree awards if the acquiree or its employees have the ability to enforce replacement. For example, for the purposes .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

and the acquiree awards as of the acquisition date in accordance with Ind AS 102. The portion of the market-based measure of the replacement award that is part of the consideration transferred in exchange for the acquiree equals the portion of the acquiree award that is attributable to pre-combination service. B58 The portion of the replacement award attributable to pre-combination service is the market-based measure of the acquiree award multiplied by the ratio of the portion of the vesting per .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t award less the amount attributed to pre-combination service. Therefore, the acquirer attributes any excess of the market-based measure of the replacement award over the market-based measure of the acquiree award to post-combination service and recognises that excess as remuneration cost in the post-combination financial statements. The acquirer shall attribute a portion of a replacement award to post-combination service if it requires post110 combination service, regardless of whether employee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uirer expects that only 95 per cent of the award will vest, the amount included in consideration transferred in the business combination is ₹ 95. Changes in the estimated number of replacement awards expected to vest are reflected in remuneration cost for the periods in which the changes or forfeitures occur not as adjustments to the consideration transferred in the business combination. Similarly, the effects of other events, such as modifications or the ultimate outcome of awards with pe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

based measure of awards classified as liabilities after the acquisition date and the related income tax effects are recognised in the acquirer s post-combination financial statements in the period(s) in which the changes occur. B62 The income tax effects of replacement awards of share-based payments shall be recognised in accordance with the provisions of Ind AS 12, Income Taxes. Equity-settled share-based payment transactions of the acquiree B62A The acquiree may have outstanding share-based pa .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the non-controlling interest on the basis of the ratio of the portion of the vesting period completed to the greater of the total vesting period and the original vesting period of the share-based payment transaction. The balance is allocated to post-combination service. Other Ind ASs that provide guidance on subsequent measurement and accounting (application of paragraph 54) B63 Examples of other Ind ASs that provide guidance on subsequently measuring and accounting for assets acquired and liab .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

business combination. (c) Ind AS 12 prescribes the subsequent accounting for deferred tax assets (including unrecognised deferred tax assets) and liabilities acquired in a business combination. (d) Ind AS 102 provides guidance on subsequent measurement and accounting for the portion of replacement share-based payment awards issued by an acquirer that is attributable to employees future services. (e) Ind AS110 provides guidance on accounting for changes in a parent s ownership interest in a subsi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

iree. (e) a qualitative description of the factors that make up the goodwill recognised, such as expected synergies from combining operations of the acquiree and the acquirer, intangible assets that do not qualify for separate recognition or other factors. (f) the acquisition-date fair value of the total consideration transferred and the acquisition-date fair value of each major class of consideration, such as: (i) cash; (ii) other tangible or intangible assets, including a business or subsidiar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the payment; and (iii) an estimate of the range of outcomes (undiscounted) or, if a range cannot be estimated, that fact and the reasons why a range cannot be estimated. If the maximum amount of the payment is unlimited, the acquirer shall disclose that fact. (h) for acquired receivables: (i) the fair value of the receivables; (ii) the gross contractual amounts receivable; and (iii) the best estimate at the acquisition date of the contractual cash flows not expected to be collected. The disclos .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ue cannot be measured reliably, the acquirer shall disclose: (i) the information required by paragraph 86 of Ind AS 37; and (ii) the reasons why the liability cannot be measured reliably. (k) the total amount of goodwill that is expected to be deductible for tax purposes. (l) for transactions that are recognised separately from the acquisition of assets and assumption of liabilities in the business combination in accordance with paragraph 51: (i) a description of each transaction; (ii) how the a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

xpense and the line item or items in the statement of profit and loss in which those expenses are recognised. The amount of any issue costs not recognised as an expense and how they were recognised shall also be disclosed. (n) in a bargain purchase (see paragraphs 34-36A): (i) the amount of any gain recognised in other comprehensive income in accordance with paragraph 34; (ii) the amount of any gain directly recognised in equity in accordance with paragraph 36A;and (iii) a description of the rea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

sure that value. (p) in a business combination achieved in stages: (i) the acquisition-date fair value of the equity interest in the acquiree held by the acquirer immediately before the acquisition date; and (ii) the amount of any gain or loss recognised as a result of remeasuring to fair value the equity interest in the acquiree held by the acquirer before the business combination (see paragraph 42) and the line item in the statement of profit and loss in which that gain or loss is recognised. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

is impracticable, the acquirer shall disclose that fact and explain why the disclosure is impracticable. This Ind AS uses the term impracticable with the same meaning as in Ind AS 8, Accounting Policies, Changes in Accounting Estimates and Errors. B65 For individually immaterial occurring during the reporting period that are material collectively, the acquirer shall disclose in aggregate the information required by paragraph B64(e)-(q). B66 If the acquisition date of a business combination is af .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ollowing information for each material business combination or in the aggregate for individually immaterial that are material collectively: (a) if the initial accounting for a business combination is incomplete (see paragraph 45) for particular assets, liabilities, non-controlling interests or items of consideration and the amounts recognised in the financial statements for the business combination thus have been determined only provisionally: (i) the reasons why the initial accounting for the b .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

deration liability or the liability is cancelled or expires: (i) any changes in the recognised amounts, including any differences arising upon settlement; (ii) any changes in the range of outcomes (undiscounted) and the reasons for those changes; and (iii) the valuation techniques and key model inputs used to measure contingent consideration. (c) for contingent liabilities recognised in a business combination, the acquirer shall disclose the information required by paragraphs 84 and 85 of Ind AS .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ale and Discontinued Operations. (iii) adjustments resulting from the subsequent recognition of deferred tax assets during the reporting period in accordance with paragraph 67. (iv) goodwill included in a disposal group classified as held for sale in accordance with Ind AS 105 and goodwill derecognised during the reporting period without having previously been included in a disposal group classified as held for sale. (v) impairment losses recognised during the reporting period in accordance with .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on of any gain or loss recognised in the current reporting period that both: (i) relates to the identifiable assets acquired or liabilities assumed in a business combination that was effected in the current or previous reporting period; and (ii) is of such a size, nature or incidence that disclosure is relevant to understanding the combined entity s financial statements. Appendix C This appendix is an integral part of the Ind AS. of entities under common control Scope 1 This appendix deals with .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fic purpose other than provision for depreciation. Common control business combination means a business combination involving entities or businesses in which all the combining entities or businesses are ultimately controlled by the same party or parties both before and after the business combination, and that control is not transitory. Common control 3 Common control will include transactions, such as transfer of subsidiaries or businesses, between entities within a group. 4 The extent of non-co .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

a combination involves entities under common control. 6 An entity can be controlled by an individual, or by a group of individuals acting together under a contractual arrangement, and that individual or group of individuals may not be subject to the financial reporting requirements of Ind ASs. Therefore, it is not necessary for combining entities to be included as part of the same consolidated financial statements for a business combination to be regarded as one having entities under common con .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to involve the following: (i) The assets and liabilities of the combining entities are reflected at their carrying amounts. (ii) No adjustments are made to reflect fair values, or recognise any new assets or liabilities. The only adjustments that are made are to harmonise accounting policies. (iii) The financial information in the financial statements in respect of prior periods should be restated as if the business combination had occurred from the beginning of the preceding period in the fina .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ppearing in the financial statements of the transferor is aggregated with the corresponding balance appearing in the financial statements of the transferee. Alternatively, it is transferred to General Reserve, if any. 12 The identity of the reserves shall be preserved and shall appear in the financial statements of the transferee in the same form in which they appeared in the financial statements of the transferor. Thus, for example, the General Reserve of the transferor entity becomes the Gener .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d plus any additional consideration in the form of cash or other assets and the amount of share capital of the transferor shall be transferred to capital reserve and should be presented separately from other capital reserves with disclosure of its nature and purpose in the notes. Disclosure 13 The following disclosures shall be made in the first financial statements following the business combination: (a) names and general nature of business of the combining entities; (b) the date on which the t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ments for issue by either party to the business combination, disclosure is made in accordance with Ind AS 10 Events after the Reporting Period, but the business combination is not incorporated in the financial statements. In certain circumstances, the business combination may also provide additional information affecting the financial statements themselves, for instance, by allowing the going concern assumption to be maintained. Appendix D: References to matters contained in other Indian Account .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

(Ind AS) 103 and the corresponding International Financial Reporting Standard (IFRS) 3, , issued by the International Accounting Standards Board. Comparison with IFRS 3, 1 IFRS 3 excludes from its scope of entities under common control. Ind AS 103 (Appendix C) gives the guidance in this regard. Consequently, paragraph 2 has been modified and paragraph 2B has been added in Ind AS 103. Further, paragraphs B1-B4 of IFRS 3 have been deleted in Ind AS 103. In order to maintain consistency with paragr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ss combination to be recoganised in profit or loss. Ind AS 103 requires the same to be recognised in other comprehensive income and accumulated in equity as capital reserve, unless there is no clear evidence for the underlying reason for classification of the business combination as a bargain purchase, in which case, it shall be recognised directly in equity as capital reserve. This has some consequential changes such as change in wording of paragraphs 34, 36 and 48, additional disclosure in par .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version