IFRS Foundation
Example8 2012-01-01 2012-12-31 Example8 2012-06-30 example8:TCMember Example8 2012-01-01 2012-12-31 example8:TCMember iso4217:EUR xbrli:pure

IFRS Taxonomy 2016 – Illustrative examples

Business Combinations

Examples from IFRS 3 (IE72) representing some of the disclosures required by IFRS 3 for acquisition of a  company using block and detailed XBRL tagging.


Footnote X: Acquisitions

On 30 June 20X2 AC acquired 15 per cent of the outstanding ordinary shares of TC.  On 30 June 2012 AC acquired 60 per cent of the outstanding ordinary shares of TC and obtained control of TC.   TC is a provider of data networking products and services in Canada and Mexico.  As a result of the acquisition, AC is expected to be the leading provider of data networking products and services in those markets.  It also expects to reduce costs through economies of scale.

The goodwill of CU 2,500 arising from the acquisition consists largely of the synergies and economies of scale expected from combining the operations of AC and TC.

None of the goodwill recognised is expected to be deductible for income tax purposes.  The following table summarises the consideration paid for TC and the amounts of the assets acquired and liabilities assumed recognised at the acquisition date, as well as the fair value at the acquisition date of the non-controlling interest in TC.

At 30 June 20X2





Equity instruments ( 100,000 ordinary shares of AC)


Contingent consideration arrangement


Total consideration transferred


Fair value of AC’s equity interest in TC held before the business combination




Acquisition-related costs (included in selling, general and administrative expenses in AC’s statement of comprehensive income for the year ended 31 December 20X2)


Recognised amounts of identifiable assets acquired and liabilities assumed

Financial assets




Property, plant and equipment


Identifiable intangible assets


Financial liabilities

( 4,000)

Contingent liability

( 1,000)

Total identifiable net assets


Non-controlling interest in TC

( 3,300)




Copyright © 2016 International Financial Reporting Standards (IFRS) Foundation. All rights reserved. Reproduction and use rights are strictly limited. For more information on the IFRS Foundation's copyright and the terms and conditions of use for these files, please refer to http://go.ifrs.org/IFRSTterms.

The IFRS Foundation logo, the IASB logo, the IFRS for SMEs logo, the “Hexagon Device”, “IFRS Foundation”, “eIFRS”, “IAS”, “IASB”, “IFRS for SMEs”, “IASs”, “IFRS”, “IFRSs”, “International Accounting Standards” and “International Financial Reporting Standards”, “IFRIC”, “SIC” and “IFRS Taxonomy” are Trade Marks of the IFRS Foundation. For further information about where the Trade Marks are protected and/or are in use please contact the IFRS Foundation.