MFRS

Insights into MFRS 3 - Recognising and measuring goodwill or gain from a bargain purchase

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Mergers and acquisitions (business combinations) can have a fundamental impact on the acquirer’s operations, resources and strategies. For most entities such transactions are infrequent, and each is unique. MFRS 3 ‘Business Combinations’ contains the requirements for these transactions, which can be challenging 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.

This article discusses how goodwill, or a gain from a bargain purchase, is initially recognised and measured under MFRS 3, which represents the final step of applying the acquisition method.

Insights into MFRS 3

Insights into MFRS 3

Take a look at our publication to know about "Recognising and measuring goodwill
or gain from a bargain purchase".

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How we can help

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.