IFRS 3 Business Combinations and IAS 38 Intangible Assets govern how companies should account for and disclose their goodwill an

Finance & Accounting
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Introduction IFRS 3 IFRS 3 deals with reporting of an entity when it incorporates a business combination. A business combination is bringing together of several businesses under one reporting unit. Normally there is an acquirer which acquires various other acquirees.


For instance, all payments made to acquire a business must be recorded at fair value at the date of acquisition. And the contingent payments need to be classified as ‘debt’ which is measured sequentially through the income statement. All costs pertaining to acquisitions are expensed. IAS 38 This standard prescribes accounting policies for treating intangible assets that are not supervised in particular by any other standard. A firm can only recognize an intangible asset if it meets some specific standard requirements. This standard also guides in measuring the amount at which to report the intangible asset and specific disclosure requirements related to that intangible asset. IAS 38 (amendments) IAS 38 (Intangible assets) amendments are a part of annual improvement process of IASB that were published in April 2009. This amendment provides guidance for measuring the fair value of any intangible that is acquired through a business combination. It allows making a single group of all relevant intangibles that have similar economic lives. Charles Stanley Group PLC Introduction Charles Stanley Group PLC, (along with their subsidiaries) is in the investment business. They are headquartered and operate in UK. Last year Matterley Asset Management (Fund Management Company) joined CSG. This company (CSG) is registered as a public company on London Stock Exchange. ...
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