BC383 To help entities apply the acquisition method as required by the revised standards, the boards decided to provide additional guidance for business combinations achieved in stages and those achieved without the transfer of consideration. Paragraphs BC384-BC389 discuss the guidance provided on business combinations achieved in stages. The guidance on combinations achieved without the transfer of consideration merely responds to a question about how to report the acquiree’s net assets in the equity section of the acquirer’s post‑combination statement of financial position, and this Basis for Conclusions does not discuss that guidance further.
Business combinations achieved in stages
BC384 In a business combination achieved in stages, the acquirer remeasures its previously held equity interest at its acquisition‑date fair value and recognises the related gain or loss in profit or loss (paragraph 42 of the revised IFRS 3). The boards concluded that a change from holding a nonâ
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