ScopeScope

Scope

2 This Standard applies to a transaction or other event that meets the definition of a business combination. This Standard does not apply to:

(a) the accounting for the formation of a joint arrangement in the financial statements of the joint arrangement itself.

(b) the acquisition of an asset or a group of assets that does not constitute a business. In such cases the acquirer shall identify and recognise the individual identifiable assets acquired (including those assets that meet the definition of, and recognition criteria for, intangible assets in AASB 138 Intangible Assets) and liabilities assumed. The cost of the group shall be allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at the date of purchase. Such a transaction or event does not give rise to goodwill.

(c) a combination of entities or businesses under common control (paragraphs B1-B4 provide related application guidance).

Aus 2.1 A restructure of administrative arrangements, as defined in Appendix A of AASB 1004 Contributions, is outside the scope of this Standard. AASB 1004 specifies requirements for restructures of administrative arrangements.[1]

2A The requirements of this Standard do not apply to the acquisition by an investment entity, as defined in AASB 10 Consolidated Financial Statements, of an investment in a subsidiary that is required to be measured at fair value through profit or loss.