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 Valuation Services - Mergers/Acquisitions


Key Valuation



 International Financial

  Reporting Standards

  IFRS and AASB 3 
 Business Combinations

 Purchase price allocation

 Fair Value

 Remaining life assessments

 Market Value

 Pre acquisition tangible

  asset modelling

 Tax consolidation

 C4 Market Valuation




Financial                Mergers/Acquisitions               Taxation               Leasing/Finance               Insurance

Litigation                Asset Registers




IFRS 3 and AASB3 Business Combinations: Apportionment of Purchase Price


IFRS 3 requires a business to state whether a transaction or event is a business combination and, if it is, to account for it by applying the acquisition method. The acquisition method requires the recognition and measurement of the  identifiable assets acquired, the liabilities assumed and any non-controlling interest in the acquiree.


The combination of businesses triggers the requirement for the assets acquired in the transaction to be recognised and measured at fair value. A key component of the transaction is a restatement of the “new” entities balance sheet. As part of the restatement, the overall purchase price has to be allocated amongst the assets at fair value.


If you are purchasing a business, MitchellMunn offers the expertise to estimate the fair values of the fixed assets acquired in the transaction.