AASB 3 - Business Combinations - March 2008
Measurement principleMeasurement principle
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Measurement principle
18 The acquirer shall measure the identifiable assets acquired and the liabilities assumed at their acquisition-date fair values.
19 For each business combination, the acquirer shall measure at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation at either:
(a) fair value; or
(b) the present ownership instruments’ proportionate share in the recognised amounts of the acquiree’s identifiable net assets.
All other components of non-controlling interests shall be measured at their acquisition-date fair values, unless another measurement basis is required by Australian Accounting Standards.
20 Paragraphs 24-31 specify the types of identifiable assets and liabilities that include items for which this Standard provides limited exceptions to the measurement principle.