Document ID: chunk:federal_register_of_legislation:F2023C00389:body:0:p4
Version: federal_register_of_legislation:F2023C00389
Segment Type: other
Provision Reference: 
Character Range: 8805–11756

transaction or event does not give rise to goodwill.
(c) a combination of entities or businesses under common control (paragraphs B1–B4 provide related application guidance).
Aus2.1 A restructure of administrative arrangements, as defined in Appendix A of AASB 1004 Contributions, is outside the scope of this Standard. AASB 1004 specifies requirements for restructures of administrative arrangements.
2A The requirements of this Standard do not apply to the acquisition by an investment entity, as defined in AASB 10 Consolidated Financial Statements, of an investment in a subsidiary that is required to be measured at fair value through profit or loss.

Identifying a business combination
3 An entity shall determine whether a transaction or other event is a business combination by applying the definition in this Standard, which requires that the assets acquired and liabilities assumed constitute a business. If the assets acquired are not a business, the reporting entity shall account for the transaction or other event as an asset acquisition. Paragraphs B5–B12D provide guidance on identifying a business combination and the definition of a business.

The acquisition method
4 An entity shall account for each business combination by applying the acquisition method.
5 Applying the acquisition method requires:
(a) identifying the acquirer;
(b) determining the acquisition date;
(c) recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree; and
(d) recognising and measuring goodwill or a gain from a bargain purchase.

Identifying the acquirer
6 For each business combination, one of the combining entities shall be identified as the acquirer.
7 The guidance in AASB 10 shall be used to identify the acquirer—the entity that obtains control of another entity, ie the acquiree. If a business combination has occurred but applying the guidance in AASB 10 does not clearly indicate which of the combining entities is the acquirer, the factors in paragraphs B14–B18 shall be considered in making that determination.

Determining the acquisition date
8 The acquirer shall identify the acquisition date, which is the date on which it obtains control of the acquiree.
9 The date on which the acquirer obtains control of the acquiree is generally the date on which the acquirer legally transfers the consideration, acquires the assets and assumes the liabilities of the acquiree—the closing date. However, the acquirer might obtain control on a date that is either earlier or later than the closing date. For example, the acquisition date precedes the closing date if a written agreement provides that the acquirer obtains control of the acquiree on a date before the closing date. An acquirer shall consider all pertinent facts and circumstances in identifying the acquisition date.

Recognising and measuring the identifiable assets acquired, the liabilities assumed and