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Compiled AASB Standard  AASB 3

Business Combinations

This compiled Standard applies to annual periods beginning on or after 1 January 2023 but before 1 July 2026.  Earlier application is permitted for annual periods beginning after 24 July 2014 but before 1 January 2023.  It incorporates relevant amendments made up to and including 15 December 2022.
Prepared on 6 April 2023 by the staff of the Australian Accounting Standards Board.
Compilation no. 5

Compilation date:  31 December 2022

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COPYRIGHT
© Commonwealth of Australia 2023
This compiled AASB Standard contains IFRS Foundation copyright material.  Reproduction within Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source.  Requests and enquiries concerning reproduction and rights for commercial purposes within Australia should be addressed to The Managing Director, Australian Accounting Standards Board, PO Box 204, Collins Street West, Victoria 8007.
All existing rights in this material are reserved outside Australia.  Reproduction outside Australia in unaltered form (retaining this notice) is permitted for personal and non-commercial use only.  Further information and requests for authorisation to reproduce IFRS Foundation copyright material for commercial purposes outside Australia should be addressed to the IFRS Foundation at www.ifrs.org.

Contents

COMPARISON WITH IFRS 3
ACCOUNTING STANDARD
AASB 3 BUSINESS COMBINATIONS

from paragraph
Objective 1
Scope 2
Identifying a business combination 3
The acquisition method 4
Identifying the acquirer 6
Determining the acquisition date 8
Recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree
Recognition principle 10
Recognition conditions 11
Classifying or designating identifiable assets acquired and liabilities assumed in a business combination 15
Measurement principle 18
Exceptions to the recognition or measurement principles 21
Exceptions to the recognition principle 21A
Exceptions to both the recognition and measurement principles 24
Exceptions to the measurement principle 29
Recognising and measuring goodwill or a gain from a bargain purchase 32
Bargain purchases 34
Consideration transferred 37
Contingent consideration 39
Additional guidance for applying the acquisition method to particular types of business combinations
A business combination achieved in stages 41
A business combination achieved without the transfer of consideration 43
Measurement period 45
Determining what is part of the business combination transaction 51
Acquisition-related costs 53
Subsequent measurement and accounting 54
Reacquired rights 55
Contingent liabilities 56
Indemnification assets 57
Contingent consideration 58
Disclosures 59
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