IFRS 3 - Business combinations (IFRS)

Question 1

Business combinations (IFRS)

Answer 1

• For a business combination to occur, there must be:
  o an acquirer who has gained control, and
  o a business that has been purchased
   A business is defined as “an integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities.”
   “Determining whether a particular set of assets and activities is a business should be based on whether the integrated set is capable of being conducted and managed as a business by a market participant.”

Reference: IFRS 3