IFRS 3: Business Combinations
Accounting for business combinations, including purchase price allocation, goodwill recognition, and contingent consideration.
Why IFRS 3 matters
M&A activity drives the most consequential one-time accounting events in a year. Purchase price allocations always require an auditor's expert (CAS 620).
Framework: International Financial Reporting Standards (IFRS)
IFRS are issued by the IFRS Foundation and used by Canadian publicly accountable enterprises as required by Part I of the CPA Canada Handbook. Auditors test whether the financial statements comply with IFRS as issued by the IASB.
Primary source: IFRS Foundation
Frequently asked
What is IFRS 3?
Accounting for business combinations, including purchase price allocation, goodwill recognition, and contingent consideration.
Why does IFRS 3 matter for an audit?
M&A activity drives the most consequential one-time accounting events in a year. Purchase price allocations always require an auditor's expert (CAS 620).
Which framework does IFRS 3 belong to?
IFRS 3 falls under International Financial Reporting Standards (IFRS). IFRS are issued by the IFRS Foundation and used by Canadian publicly accountable enterprises as required by Part I of the CPA Canada Handbook. Auditors test whether the financial statements comply with IFRS as issued by the IASB.
Related standards — International Financial Reporting Standards (IFRS)
See how Auditus checks IFRS 3
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