Ifrs 3

mano

Hi all,
I got exam coming soon, I really need to know key points about IFRS 3. I only know that it is about business combination.
Anyone help please?
Thanks
Mano

guinea pig

Hi Mano,
If you get the Osborne book for Limited Company Accounts it has lots of information, (make sure that you get the latest edition, you could try a library?) it shows the key features of IFRS 3, Business combinations as;
~methods of accounting to be used in acquisitions
~assets & liabilities acquired
~goodwill
~negative goodwill
GP

mano

Alright! Thanks GP.
It's hard to get the Osborne book now. I am using kaplan .

nicd1981

Hi Mano,

I sat the exam monday night and IFRS 3 was my 3rd question

On the aat website there is a info sheet with all the standards that are examinable

I advise you to read it because this was a written question, i think i failed as i didnt write enough on this and the other two written questions i had

xx

mano

Thank Nic, good luck for your result.
And I got the sheet but there is only 2 sentences abouts IFRS 3, after that wrote about IAS 27 and IAS 28. I am wondering if they both comes under IFRS 3.:S

nicd1981

Hi Mano

for late reply, I didnt even answer the 3rd part of my written section on ifrs 3 bargain purchase as i didnt know this
Ive found this link that does mention it:

http://www2.accaglobal.com/members/publications/accounting_business/CPD/IFRS3

Think you may find it helpful

Once i get my results i hope to resit straight away as i want to be finished by July!

Goodluck

When is your exam btw?

Nic xx

mano

nicd1981 wrote: »

Hi Mano

for late reply, I didnt even answer the 3rd part of my written section on ifrs 3 bargain purchase as i didnt know this
Ive found this link that does mention it:

http://www2.accaglobal.com/members/publications/accounting_business/CPD/IFRS3

Think you may find it helpful

Once i get my results i hope to resit straight away as i want to be finished by July!

Goodluck

When is your exam btw?

Nic xx

Thanks, its Okay , I have done it on last Friday , I think I did alright with it. hoping for positive result. :001_smile:

nicd1981

Oh so sorry Manu

Congtratulations though, at least you sound positive

How did you get on? Did you get the question on IFRS 3?

Any otehr standards to be worried about, i definitely failed, just doing revision on it now and the conceptual frame work xx

nic x

mano

nicd1981 wrote: »

Oh so sorry Manu

Congtratulations though, at least you sound positive

How did you get on? Did you get the question on IFRS 3?

Any otehr standards to be worried about, i definitely failed, just doing revision on it now and the conceptual frame work xx

nic x

It`s Okay Nic , thanks
LOL! this is what i am thinking but actually gona know after the result:001_tt2:
And yeah got task 3 about IFRS 3 , and there were 3 questions, I only did the 3rd one. it was about how to deal with gain on a bargain purchase.:001_smile:
Yeah just keep revising IAS 2, IAS 16,IAS 40 etc because you never know anything can come up in exam.
All the standards and definitions I revised alot didn`t come up in the exam.
3 questions of IFRS 3 came up so better to revise all different topics.

Newts22

Here is the extract from my Frank Woods book;
IFRS 3
Purchased goodwill should be capitalised. It must not be amortised but should be checked for impairment annually. Any impairment should be written off to profit or loss and cannot be reinstated. Gain from a bargain purchase must be eliminated immediately by reviewing and amending the fair values of the net assets acquired and, if necessary, recognising the gain in profit or loss.

Hope this helps a little!
Cheers

nicd1981

Hi Newts,

what is the book called?
I think i could do with purchasing it!

haha

Nic xx

Newts22

Lol Nic

Its Frank Woods Business Accounting 2.
Both current books have the fish on the front!
It's the only book I've seen so far which mentions the bargain purchase!

uknitty

Gain on Bargain Purchase is another way of saying Negative Goodwill (i.e. when you pay less in acquiring a business than the sum of its identifiable assets)

Negative Goodwill is definitely covered in the Osborne and Kaplan books. Not sure if they use the term Gain on Bargain Purchase though.