IFRS for SMEs / Third edition changes / Section 19 in the third edition: business combinations
Section 19 in the third edition: business combinations
Section 19 is aligned more closely with IFRS 3 Business Combinations. It matters only to a company that acquires another business during the year.
What changes
- Section 19 Acquisition-related costs are expensed rather than added to the cost of the combination.
- Section 19 Contingent consideration is recognised at fair value at the acquisition date.
What to prepare
- For an acquisition in the first third-edition year, separate the legal and advisory fees from the purchase price.
How Sight handles it
Business combination accounting is not automated in Sight.
Section 19: Business Combinations and Goodwill: the section in full.
Other third-edition changes
- Section 2 in the third edition: concepts and pervasive principles
- Section 3 in the third edition: material accounting policy information
- Section 4 in the third edition: disaggregating line items
- Section 6 in the third edition: dividends declared after year end
- Section 7 in the third edition: financing liabilities and supplier finance
- Section 8 in the third edition: material policies and judgements
- Section 11 in the third edition: one section for financial instruments, ageing and maturity
- Section 12 in the third edition: the new fair value section
- Section 23 in the third edition: the five-step revenue model
- Section 29 in the third edition: uncertain tax treatments
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