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The Interpretations Committee discussed a request for clarification on the accounting for a pre-existing relationship that is not a reacquired right, between the acquirer and the acquiree in a business combination

 05 November 2011


The Committee received a request asking for clarification on the accounting for a pre-existing relationship that is not a reacquired right, between the acquirer and the acquiree in a business combination.

The Committee noted that paragraphs B51 to B52 of IFRS 3 and the illustrative example in paragraphs IE54 to IE57 of the Illustrative Examples to IFRS 3 are clear that the ‘at-market’ component of a pre-existing relationship, that is not a reacquired right, is included in goodwill following the business combination.

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