We have received a lot of emails from students in AccountancyStudents who seem to ask a similar style of question concerning IFRS 3 (revised) ‘Business Combinations’ and the recent changes to this standard.

The revisions to IFRS 3 have been summarised quite a lot on AccountancyStudents, however as a quick overview, the changes were notably:

- change of the term ‘minority interests’ to ‘non controlling interests’
- recognition of ‘full’ goodwill even if control is less than 100%
- acquisition related costs no longer capitalised
- changes to contingent consideration
- changes to accounting for ‘step’ acquisitions (where control is obtained or reduces the NCI in a previously acquired subsidiary)

Reading various comments, it seems that the revised IFRS 3 is still a ‘hot topic’ with wide scope for examinability (hence this thread containing links to various resources which have covered the changes to IFRS 3). Students will need a good grasp of the changes in readiness for their financial reporting exam.

Regards
Steve
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