ACCA考官文章1.pdfVIP

technical student accountant page 50 februarY 2009 BUSINESS COMBINATIONS: IFRS 3 (REVISED) RELEVANT TO ACCA QUALIFICATION PAPER P2 This first article in a two-part series provides an introduction to IFRS 3 and IAS 27, including piecemeal acquisitions and disposals. The second article – in the April 2009 issue of student accountant – will tackle complex groups. IFRS 3 (Revised), Business Combinations, will result in significant changes $5m, and two further payments of $1m if the return on capital employed in accounting for business combinations. IFRS 3 (Revised) further develops (ROCE) exceeds 10% in each of the subsequent financial years ending the acquisition model and applies to more transactions, as combinations by 31 December. All indicators have suggested that this target will be met. Josey contract alone and of mutual entities are included in the standard. Common uses a discount rate of 7% in any present value calculations. control transactions and the formation of joint ventures are not dealt with by the standard. IFRS 3 (Revised) affects the first accounting period beginning Requirement: on or after 1 July 2009. It can be applied early, but only to an accounting Determine the value of the investment. period beginning on or after 30 June 2007. Importantly, retrospective application to earlier business combinations is not allowed. Solution The two payments that are conditional upon reaching the target ROCE are 2 PURCHASE CONSIDERATION contingent cons