| 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 |
Goodwill | 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 |