How are business combinations affected by the transition to the accounting standards for private enterprises?
Sections 1582, Business Combinations, and 1602, Non-controlling Interests, address the accounting for a business combination and subsequent changes in ownership interests. The transitional provisions in respect of business combinations effectively provide adopters with three alternatives: • To apply the standards retrospectively to all previous business combinations, • To apply the standards retrospectively to all business combinations occurring after a specified date selected by management, or • To apply the standards only to business combinations occurring subsequent to the date of transition. Paragraph 1500.11 sets out the consequences of not applying the standards retrospectively to a past business combination.
Related Questions
- If an enterprise concludes that it has no significant accounting policy changes on adoption of accounting standards for private enterprises, what sort of disclosure should it make on adoption?
- What is the effective date of accounting standards for private enterprises (ASPE)? When is the earliest that an enterprise can adopt these standards?
- Who can use accounting standards for private enterprises?
