Accounting issues on mergers and acquisitions—business combinations under IFRS and new UK GAAP (FRS 102)
Produced in partnership with Tessa Park of Moore Kingston Smith
Accounting issues on mergers and acquisitions—business combinations under IFRS and new UK GAAP (FRS 102)

The following Corporate practice note Produced in partnership with Tessa Park of Moore Kingston Smith provides comprehensive and up to date legal information covering:

  • Accounting issues on mergers and acquisitions—business combinations under IFRS and new UK GAAP (FRS 102)
  • 'Business combination' accounting
  • Is the transaction a business combination?
  • Identifying the acquirer and acquired
  • Determining the date of the business combination
  • Determining the purchase consideration
  • Calculating goodwill
  • Accounting treatment of goodwill and negative goodwill
  • Other issues
  • Acquisition of a business vs acquisition of a company
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Corporate lawyers?

This Practice Note covers how 'business combinations' are accounted for, together with some accounting issues that can arise as a result of the way M&A transactions are structured and how these can affect negotiation of the acquisition agreement.

This Practice Note looks at the following accounting standards, highlighting key areas of difference:

  1. the International Financial Reporting Standards (IFRS), developed and maintained by the International Accounting Standards Board (IASB) for global application (they are now mandated for use by over 100 countries, including the EU and most of the G20, with specific reference to IFRS 3 (Business combinations) (IFRS 3))

  2. FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), one of a number of Financial Reporting Standards (new UK GAAP) issued by the Financial Reporting Council (FRC), for financial periods beginning on or after 1

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