Asset acquisition

Business combination

Assets and liabilities

Allocate the purchase price to the individual identifiable assets and liabilities on the basis of their relative fair values

Recognize and measure the identifiable assets and liabilities at their acquisition-date fair values


Not recognized

recognize any related goodwill or negative goodwill

Deferred tax

No deferred tax is recognized under IAS 12, given the initial recognition exception

Deferred tax is recognized in accordance with IAS 12

Contingent liabilities

Not recognized

Contingent liabilities that are a present obligation arising from past events and can be reliably measured should be recognized at fair value

Transaction costs

Form part of the cost of the asset

Expensed in the period incurred

Subsequent measurement implications

Follow relevant standards for each asset

Follow relevant standards for each asset; annual impairment test for any recognized goodwill is required