SPECULATIVE MEASUREMENT IN BUSINESS COMBINATIONS

KATARÍNA SIGETOVÁ

https://doi.org/10.53465/EDAMBA.2021.9788022549301.443-452

 

Abstract: The process of business combinations is closely linked to measurement. International Financial Reporting Standard IFRS 3 Business Combinations contains a large part focused on measurement. Measurement in business combinations can be divided into three areas, which are the measurement of the acquiree's identifiable assets acquired and liabilities assumed, the measurement of non-controlling interests and the measurement of goodwill or gain from a bargain purchase. The measurement of the acquiree's identifiable assets acquired and liabilities assumed is associated with the measurement principle, which states of fair value measurement. In the case of measurement of non-controlling interests, there are two measurement options - fair value measurement and proportionate share measurement. The measurement of goodwill or gain from a bargain purchase is related, among other things, to the measurement of non-controlling interests, which has a direct impact on it. The aim of the paper is to analyze measurement in business combinations with a focus on speculative measurement, which may occur in business combinations. Measurement analysis is focused on the results of practical examples in individual areas of measurement with subsequent comparison and summary.

Keywords: measurement, business combinations, fair value

JEL classification: G34, M41

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Online publication date: 12 May 2022

 

To cite this article (APA style):

Sigetová, K. (2022). Speculative Measurement in Business Combinations. Proceedings from the EDAMBA 2021 conference, 443 – 452. https://doi.org/10.53465/EDAMBA.2021.9788022549301.443-452