Conceptual Changes in Accounting for Business Combination

This article deals with changes and trends brought by IFRS 3 (revised 2008). However, the aim is not to describe all changes in their detail, rather the objective is to explain what is behind the changes and how to interpret new provisions in light of the evolution of accounting for business combinations. The major changes are illustrated by examples related to measurement of goodwill and resulting impacts which are rather complex in case of business combinations achieved in stages.