IJEBMR
ISSN: 2456-7760

Title:
BUSINESS COMBINATION ACCORDING TO IFRS 3 AS A TURNING POINT IN ACCOUNTING RECOGNITION AND MEASUREMENT

Authors:
Dr. Khaled Jamal Jaarat, Jordan

Abstract:
Researcher discussed in this study business combination according to IFRS 3 as a turning point in accounting recognition and measurement, since at acquisition date - the date that control of the controlling entity over the controlled entity achieved-, many assets, liabilities, income and expenses at that date recognized in spite of IFRSs do not permit to recognize it before. Researcher discussed this matter in details, since that treatments may be considered as duplicity in accounting procedures, those absented items from financial statements not only not recognized because criteria of recognition not met, but also there are no specific disclosures relate to these absented items, examples of these items goodwill and other internally generated intangible assets, contingent liabilities, gain from bargaining purchase, and the like. Also, at the acquisition date, assets and liabilities measured at fair value, that resulted in gains or losses from the point view of owners of controlled entity whom sell their interests to the controlling entity, these gains or losses become a losses or gains from the point view of controlling entity such as gain of bargaining purchase. Researcher concluded to necessity of declaring these facts through recognition, measurement, or through disclosures incases of impossibility of recognition, but avoid full absence of fair presentation or disclosures to facts appear between day and night.

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