|Particulars||IFRS||US GAAP||Indian GAAP|
|Types||All business combinations are acquisitons.||Similar to IFRS.||No Comprehensive standard on business combinations.
All business combinations are acquisition: except uniting of interests method is used in certain amalgamations when all the specified conditions are met. Accounting would defer for following:
* An entity acquired and held as a subsidiary
* An acquisition by way of amalgamation of entity
* A business acquisition (Assets & liabilities)
|Purchase method – values on acquisition||Assets, liabilities and contingent liabilities of acquired entity are fair valued. If control is obtained in a partial acquisition of a subsidiary, the full fair value of assets, liabilities and contingent liabilities, including portion attributable to the minority (non-controlling) interest, is recorded on consolidated balance sheet. Goodwill is recognised as the residual between the consideration paid and the percentage of the fair value of the identifiable assets, liabilities and contingent liabilities acquired.
Liabilities for restructuring activities are recognised only when acquiree has an existing liability at acquisition date. Liabilities for future losses or other costs expected to be incurred as result of the business combination cannot be recognised.
|Similar to IFRS, except minority interest is stated at pre-acquisition carrying value of net assets, and contingent liabilities of the acquiree are not recognised at the date of acquisition. Specific rules exist for acquired in-process research and development (generally expensed) and contingent liabilities.
Some restructuring liabilities relating solely to the acquired entity may be recognised if specific criteria about restructuring plans are met.
|For an entity acquired and held as a subsidiary, the assets acquired and liabilities assumed are incorporated at their existing carrying amounts for consolidation purposes.
On amalgamation, they may be incorporated at their existing carrying amounts or alternatively, the consideration is allocated to individual identifiable assets and liabilities at their fair values. However, a court order approving an amalgamation may provide different and/or additional accounting entries.
On Business acquisition, they may be incorporated at their fair values or value of surrendered assets.
No separate restructuring provision is recognised on acquisition
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