Ans:
The accounting bodies issue different accounting standards for the accounting of entity combinations. The steps led down by them are:
Identify the acquirer
Determine the acquisition date, and it is the date on which control is transferred to the acquirer.
Recognise the assets taken over, liabilities assumed, and any non-controlling interest in the acquiree.
Recognise and measure goodwill or gain on bargain purchases because of Business combination transactions.