Corporate Accounting: Recognising and Measuring Assets and Liabilities in Business Combinations

This essay discusses the process of recognising and measuring the identifiable “liabilities assumed” and “assets acquired” in a merger or acquisition. It also explains the importance of IFRS 3 and IFRS 10 in identifying the acquirer, measuring and recognition of gain from a bargain purchase or goodwill and improving the overall compatibility, relevance and reliability of the financial statement about business combination.