Document ID: chunk:federal_register_of_legislation:F2023C00389:body:0:p23
Version: federal_register_of_legislation:F2023C00389
Segment Type: other
Provision Reference: 
Character Range: 59862–62627

business combination shall be adjusted accordingly.
65D However, when a business combination agreement provides for such an adjustment, that adjustment is not included in the cost of the combination at the time of initially accounting for the combination if it either is not probable or cannot be measured reliably. If that adjustment subsequently becomes probable and can be measured reliably, the additional consideration shall be treated as an adjustment to the cost of the combination.
65E In some circumstances, the acquirer may be required to make a subsequent payment to the seller as compensation for a reduction in the value of the assets given, equity instruments issued or liabilities incurred or assumed by the acquirer in exchange for control of the acquiree. This is the case, for example, when the acquirer guarantees the market price of equity or debt instruments issued as part of the cost of the business combination and is required to issue additional equity or debt instruments to restore the originally determined cost. In such cases, no increase in the cost of the business combination is recognised. In the case of equity instruments, the fair value of the additional payment is offset by an equal reduction in the value attributed to the instruments initially issued. In the case of debt instruments, the additional payment is regarded as a reduction in the premium or an increase in the discount on the initial issue.
66 An entity, such as a mutual entity, that has not yet applied AASB 3 and had one or more business combinations that were accounted for using the purchase method shall apply the transition provisions in paragraphs B68 and B69.

Income taxes
67 For business combinations in which the acquisition date was before the previous version of this Standard is applied, the acquirer shall apply the requirements of paragraph 68 of AASB 112, as amended by AASB 2008‑3 Amendments to Australian Accounting Standards arising from AASB 3 and AASB 127, prospectively. That is to say, the acquirer shall not adjust the accounting for prior business combinations for previously recognised changes in recognised deferred tax assets. However, from the date when the previous version of this Standard is applied, the acquirer shall recognise, as an adjustment to profit or loss (or, if AASB 112 requires, outside profit or loss), changes in recognised deferred tax assets.

Reference to AASB 9
67A If an entity applies this Standard but does not yet apply AASB 9, any reference to AASB 9 should be read as a reference to AASB 139.

Withdrawal of IFRS 3 (2004)
68 [Deleted by the AASB]

Commencement of the legislative instrument
Aus68.1 [Repealed]

Withdrawal of AASB pronouncements
Aus68.2 This Standard repeals AASB 3 Business Combinations