The document summarizes the key changes and enhanced disclosure requirements under IND AS 103 for business combinations compared to Indian GAAP. The main changes include mandatory use of the purchase method, recording of all acquired assets and liabilities at fair value including contingent liabilities, prohibition of the pooling of interest method, and accounting for acquisition-related transaction costs as expenses. Goodwill is no longer amortized but tested annually for impairment. Extensive new disclosures are required regarding consideration transferred, non-controlling interests, revenues and profits of the acquired business. Completing the purchase price allocation in a timely manner is critical for financial reporting.
A business combination is a transaction or other event in which a reporting entity (the acquirer) obtains control of one or more businesses (the acquiree).
A business combination is a transaction or other event in which a reporting entity (the acquirer) obtains control of one or more businesses (the acquiree).
Summary of Ind AS 28 for the students and who are new to Ind AS. They can make a basic understanding about the words, definition, terms, provisions used in the actual Ind AS 28.
When to Consolidate and When not to?
Acquisition Method
Inter-company Entries
Consolidation Working Paper
Combined Financial Statements and how do they differ from Consolidated Financial Statements
Adjustments in Detail
Summary of Ind AS 28 for the students and who are new to Ind AS. They can make a basic understanding about the words, definition, terms, provisions used in the actual Ind AS 28.
When to Consolidate and When not to?
Acquisition Method
Inter-company Entries
Consolidation Working Paper
Combined Financial Statements and how do they differ from Consolidated Financial Statements
Adjustments in Detail
Bentleys is proud to present our annual Financial Reporting Update for all financial statement preparers, designed specifically to address the current hot issues & new developments facing our profession.
The update will provide you with practical solutions, tools and skills that will help you identify issues with the preparation of your financial statements.
You will be updated on the key changes to the financial reporting requirements in Australia, ASIC hot topic areas, and enjoy the opportunity to network with your peers and colleagues.
This update is for people in financial reporting, governance or similar roles. It will provide insight into the changing financial reporting landscape and the implications it will have on your financial statements and banking covenant requirements.
If you are a Finance Director, Chief Financial Officer or a Financial Controller this slide pack will benefit you.
A comprehensive overview of grant strcutures, administrative challenges, accounting and tax issues associated with equity compensation in the form of Performance Awards.
Revenue Recognition In IFRS By Yash BatraYash Batra
Detailed Presentation on revenue recognition as per IFRS. Accounting on revenue recognition is critical especially when World has defined path to follow IFRS accounting and reporting of its financial. I have tried to capture all critical aspects of revenue recognition in this presentation.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
The key differences between the MDR and IVDR in the EUAllensmith572606
In the European Union (EU), two significant regulations have been introduced to enhance the safety and effectiveness of medical devices – the In Vitro Diagnostic Regulation (IVDR) and the Medical Device Regulation (MDR).
https://mavenprofserv.com/comparison-and-highlighting-of-the-key-differences-between-the-mdr-and-ivdr-in-the-eu/
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
VAT Registration Outlined In UAE: Benefits and Requirementsuae taxgpt
Vat Registration is a legal obligation for businesses meeting the threshold requirement, helping companies avoid fines and ramifications. Contact now!
https://viralsocialtrends.com/vat-registration-outlined-in-uae/
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
1. Business Combination - IND AS 103
Key significant changes & significant enhancement of disclosures in IND-AS as compared to Indian GAAP
key Changes - IND AS 103
1
2
3 Recording of Assets and Liabilities at Fair Value
(a) mandatory use of purchase method of accounting for business combination except for common control transaction
(b) recording of all assets acquired and liabilities assumed to be recorded at fair value
(c )
(d) contingent liabilities which are usually not reflected on balance sheet will also get fair valued and recorded in the balance sheet at fair value
Note: purchase price allocation will be time consuming affair and will entail use of experts in many cases
IND-AS 103 provides definition of a business.
Business means “An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing a return in the form of
dividends, lower costs or other economic benefits directly to investors or other owners, members or participants”
Uniform accounting for all business combination
[ Earlier - Accounting for mergers and amalgamations covered under
(a) Accounting Standard (AS) 14 or
(b) through the process of consolidation as covered under AS 21 or
(c) through accounting of the same as an acquisition of an asset group as covered under AS 10]
intangibles assets which were originally subsumed under goodwill under current Indian GAAP; will now be reflected on the balance sheet – for e.g. in process research, customer
relationship, brands etc
Page 1 of 2
Note: purchase price allocation will be time consuming affair and will entail use of experts in many cases
4 Prohibition on Pooling of Interest Method
5 Acquisition in Stages
6 Accounting for Transaction Costs of business combination as expenses
7 Acquisition Accounting – Start Point is approval date and not appointed date
8
The fair value of the elements of the business combination transaction at the date of acquisition which is defined by the date on which the Company has acquired control over other
enterprise. Further this also results in recognition of the gain or loss on the existing carrying value of the investment in the acquired enterprise at the point of gaining control.
[Earlier An investment in a subsidiary is often acquired in stages – both in the lead-up to gaining control and after control has been obtained. The old approach to accounting for the acquisition of a subsidiary in stages was a
cost accumulation method]
acquisition-related costs such as costs for the services of lawyers, investment bankers, accountants, valuation experts, and other third parties are expensed in the period in which the
service are received . These costs are no more a part of the fair value exchange between the buyer and the seller for the acquired business.
[Earlier such costs are included in the cost of the combination, and are therefore included in the calculation of goodwill.
IND-AS 103 requires accounting for acquisition from the date when entity obtains control – considering the importance of High Court approval it is likely that control will be assessed to be
obtained only when High Court approves the scheme (date when High Court approval is obtained.) Hence, Net assets will be recorded at the fair value on the date when High Court
approval is obtained and results/profit or loss between appointed date and effective date will not be reflected in the acquirer’s financial statement.
[Earlier appointed date is considered as a date from which control is deemed to be obtained even though scheme becomes effective on approval of the High Court is much later than the appointed date. In such a scenario,
goodwill was determined based on values of assets and liabilities on the appointed date and all movements in values of assets and liabilities post appointed date was regarded as post acquisition transaction. ]
Goodwill is not allowed to be amortised, it is always tested for impairment.
[Earlier - Goodwill arising in amalgamation was required to be amortised whereas it was accounting policy choice in case of business acquisition or acquisition of subsidiary]
Further, in IND-AS, goodwill impairment testing is mandatory atleast once in a year irrespective of whether there are impairment indicators or not.
- Impact, it will save amortisation charge but at the same time it will expose entity to volatility on account of impairment hit
Further, in IND-AS, goodwill impairment testing is mandatory atleast once in a year irrespective of whether there are impairment indicators or not.
[Earlier - goodwill impairment testing was done only if there were impairment indicators]
Page 1 of 2
2. Business Combination Disclosure
Following are some key disclosures which are required under IND AS 103:
1
Date of acquisition FV of total consideration **
DD/MM/YY XX
Detail of major class comprises of above total consideration
Date of acquisition FV Amounts
DD/MM/YY Class A
DD/MM/YY Class B
DD/MM/YY Class C
DD/MM/YY Class D
DD/MM/YY Class ....
∑ FVs **
2 Goodwill that is expected to be deductible for tax purposes Rs XXXX
[the acquisition-date fair value of the total consideration transferred and the acquisition-date fair value of each major class of consideration]
Page 2 of 2
3
Non-controlling interest Date of acquisition
Amount
in the acquire (target)
recognised
Basis of measurement
Valuation techniques for
measurement
Significant inputs for
measurement
X DD/MM/YY Rs -- -- --
Y DD/MM/YY Rs -- -- --
Z DD/MM/YY Rs -- -- --
.... DD/MM/YY Rs -- -- --
Total
4
Details of Revenue and profit or loss
Note:
a) Since reporting timelines are very stiff especially for listed companies, Companies should consider organisation readiness to furnish all relevant disclosures required by IND AS 103.
b) Compliance with disclosure requirements have become lot more onerous since fair value accounting is mandatory for business combination.
c) Completion of purchase price allocation exercise and obtaining an expert sign off is critical action in financial statement close process time table in the year of acquisition.
Amount
(for all business combinations that occurred during the year had been as of the beginning of the annual reporting period)
Revenue and profit or loss of the acquire (target) since the acquisition date
Revenue and profit or loss of the combined entity for the current reporting period
Amount
(included in the consolidated statement of comprehensive income for the reporting period)
[the amount of the non-controlling interest in the acquire (target) recognised at the acquisition date and the measurement basis for that amount; and for each non-controlling interest in an acquire (target) measured at
fair value, the valuation techniques and significant inputs used to measure that value; ]
[the amounts of revenue and profit or loss of the acquire (target) since the acquisition date included in the consolidated statement of comprehensive income for the reporting period; and the revenue and profit or loss of
the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period. ]
c) Completion of purchase price allocation exercise and obtaining an expert sign off is critical action in financial statement close process time table in the year of acquisition.
Page 2 of 2