Business combinations and acquired intangible assets

Produced by Tolley in association with Malcolm Greenbaum

The following Corporation Tax guidance note Produced by Tolley in association with Malcolm Greenbaum provides comprehensive and up to date tax information covering:

  • Business combinations and acquired intangible assets
  • Introduction to business combinations
  • When an acquisition is a business combination
  • Recognition of deferred tax assets and business combinations

Business combinations and acquired intangible assets

Introduction to business combinations

One of the areas which causes most complexity in relation to deferred tax accounting under IFRS is accounting for business combinations and deferred tax liabilities recognised in respect of acquired intangible assets.

The principle of accounting for business combinations under IFRS is that a fair value should be assigned to each item on the balance sheet. The fair value is based on what the acquiring entity paid for the business it has acquired and typically this will be more than the value of the assets shown on the acquired entity’s balance sheet.

Nor

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