Business combinations are infrequent transactions that are unique for each occurrence. MFRS 3 ‘Business Combinations’ contains the requirements which can be challenging when applying in practice.

Our ‘Insights into MFRS 3’ series summarises the key areas of the Standard, highlighting aspects that are more difficult to interpret and revisiting the most relevant features that could impact your business.

Determining the ‘consideration transferred’ is one of those critical steps that an acquirer has to go through when accounting for a business combination since it is a key component of the equation when measuring the goodwill acquired. This article discusses the main practical issues affecting consideration transferred, using examples to illustrate some of the requirements.

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We hope you find the information in this article helpful in giving you some insight into MFRS 3. If you would like to discuss any of the points raised, please do not hesitate to contact us.