Financial Accounting and Reporting RECOGNITION AND MEASUREMENT

Financial Accounting and
Reporting
RECOGNITION AND MEASUREMENT OF ASSETS AND LIABILITIES IN
CONSOLIDATED FINANCIAL STATEMENTS

Acquisition of Cargo Limited
 Conditions of acquisition of cargo Limited.
 Reporting requirements of Power Limited.

Business combinations
What is business combinations.
The use of accounting standards.

Applicable accounting standards
 AASB 3 Business Combinations.
 IFRS 3 Business Combinations.

AASB 3: Business Combinations
 AASB 3 has been issued by the AASB under section 334 of the
Corporations Act, 2001.

AASB 3 outlines
 Recognition and measurement of assets.
 Recognition and measurement of liabilities.

Continues..
 Recognise and measure liabilities assumed at the time acquisition of a
business.

Recognition principle of assets
and liabilities.
 Para 10.
 Para 11.
 Para 18.

Solution to the accounting issues
 Accounting issues
 Solutions to the issues.

Accounting issues.
 Issue 1
 Issue 2
 Issue 3

References:
 AAO Consolidated Financial Statements 2018. (2018). Ophthalmology, 125(11), pp.F1-F32.
 Atanasov, A. (2016). ///// (The Category 'Business' in the Context of Accounting for Business
Combinations Under IAS/IFRS). SSRN Electronic Journal, 1(2), pp.10-17.
 BOYMAL, D. (2007). The Work Program and Priorities of the AASB. Australian Accounting
Review, 17(42), pp.3-7.
 Bugeja, M. and Loyeung, A. (2016). Accounting for business combinations and takeover
premiums: Pre- and post-IFRS. Australian Journal of Management, 42(2), pp.183-204.
 Detzen, D., Hoffmann, S. and Zülch, H. (2013). Bright Pharmaceuticals SE: Accounting for a
Business Combination under IFRS 3. Accounting Education, 22(3), pp.282-294.
 Hamid, A. (2016). Accuracy Combination Test of Classical and Modern Technical Analysis: A
Case Study in Stock of PT Wijaya Karya Tbk. Binus Business Review, 7(1), p.71.
 Stevenson, K. (2012). The Changing IASB and AASB Relationship. Australian Accounting
Review, 22(3), pp.239-243.