Document ID: chunk:federal_register_of_legislation:F2023C00389:body:0:p28
Version: federal_register_of_legislation:F2023C00389
Segment Type: other
Provision Reference: 
Character Range: 73262–76289

(a). However, if the fair value of the gross assets acquired is more than that total, a more precise calculation may sometimes be needed.

          (c) a single identifiable asset shall include any asset or group of assets that would be recognised and measured as a single identifiable asset in a business combination.

          (d) if a tangible asset is attached to, and cannot be physically removed and used separately from, another tangible asset (or from an underlying asset subject to a lease, as defined in AASB 16 Leases), without incurring significant cost, or significant diminution in utility or fair value to either asset (for example, land and buildings), those assets shall be considered a single identifiable asset.

          (e) when assessing whether assets are similar, an entity shall consider the nature of each single identifiable asset and the risks associated with managing and creating outputs from the assets (that is, the risk characteristics).

          (f) the following shall not be considered similar assets:

               (i) a tangible asset and an intangible asset;

               (ii) tangible assets in different classes (for example, inventory, manufacturing equipment and automobiles) unless they are considered a single identifiable asset in accordance with the criterion in subparagraph (d);

               (iii) identifiable intangible assets in different classes (for example, brand names, licences and intangible assets under development);

               (iv) a financial asset and a non-financial asset;

               (v) financial assets in different classes (for example, accounts receivable and investments in equity instruments); and

               (vi) identifiable assets that are within the same class of asset but have significantly different risk characteristics.

     B7C The requirements in paragraph B7B do not modify the guidance on similar assets in AASB 138 Intangible Assets; nor do they modify the meaning of the term 'class' in AASB 116 Property, Plant and Equipment, AASB 138 and AASB 7 Financial Instruments: Disclosures.

Elements of a business
B8 Although businesses usually have outputs, outputs are not required for an integrated set of activities and assets to qualify as a business. To be capable of being conducted and managed for the purpose identified in the definition of a business, an integrated set of activities and assets requires two essential elements—inputs and processes applied to those inputs. A business need not include all of the inputs or processes that the seller used in operating that business. However, to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Paragraphs B12–B12D specify how to assess whether a process is substantive.
B8A If an acquired set of activities and assets has outputs, continuation of revenue does not on its own indicate that both an input and