Document ID: chunk:federal_register_of_legislation:F2023C00389:body:0:p7
Version: federal_register_of_legislation:F2023C00389
Segment Type: other
Provision Reference: 
Character Range: 17022–20076

(b) [deleted]
The acquirer shall classify those contracts on the basis of the contractual terms and other factors at the inception of the contract (or, if the terms of the contract have been modified in a manner that would change its classification, at the date of that modification, which might be the acquisition date).
          Aus17.1 Public sector entities applying AASB 4 Insurance Contracts shall apply an exception to the principle in paragraph 15 to the classification of a contract as an insurance contract. The acquirer shall classify those contracts as described in paragraph 17.

Measurement principle
18 The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair values.
19 For each business combination, the acquirer shall measure at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of the entity's net assets in the event of liquidation at either:
(a) fair value; or
(b) the present ownership instruments' proportionate share in the recognised amounts of the acquiree's identifiable net assets.
All other components of non-controlling interests shall be measured at their acquisition-date fair values, unless another measurement basis is required by Australian Accounting Standards.
20 Paragraphs 24–31A specify the types of identifiable assets and liabilities that include items for which this Standard provides limited exceptions to the measurement principle.

Exceptions to the recognition or measurement principles
21 This Standard provides limited exceptions to its recognition and measurement principles. Paragraphs 21A–31A specify both the particular items for which exceptions are provided and the nature of those exceptions. The acquirer shall account for those items by applying the requirements in paragraphs 21A–31A, which will result in some items being:
(a) recognised either by applying recognition conditions in addition to those in paragraphs 11 and 12 or by applying the requirements of other Australian Accounting Standards, with results that differ from applying the recognition principle and conditions.
(b) measured at an amount other than their acquisition-date fair values.

Exceptions to the recognition principle

Liabilities and contingent liabilities within the scope of AASB 137 or Interpretation 21
21A Paragraph 21B applies to liabilities and contingent liabilities that would be within the scope of AASB 137 Provisions, Contingent Liabilities and Contingent Assets or Interpretation 21 Levies (as identified in AASB 1048 Interpretation of Standards) if they were incurred separately rather than assumed in a business combination.
21B The Conceptual Framework for Financial Reporting defines a liability as 'a present obligation of the entity to transfer an economic resource as a result of past events'. For a provision or contingent liability that would be within the scope of AASB 137, the acquirer shall apply paragraphs 15–22