What is the primary accounting standard used for business combinations under IFRS?

The primary accounting standard used for business combinations under International Financial Reporting Standards (IFRS) is IFRS 3. This standard outlines the principles for recognizing and measuring identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree in a business combination.

IFRS 3 requires that the acquirer identify the appropriate date of acquisition and measures the acquisition at fair value. It also emphasizes the concept of control, defining a business combination as a transaction in which an acquirer obtains control of one or more businesses. This establishes clear guidelines for the financial reporting of mergers and acquisitions, ensuring transparency and consistency in how such transactions are recorded and presented in financial statements.

In contrast, other choices do not pertain to the relevant accounting framework for business combinations under IFRS. ASPE 1591 is related to accounting for business combinations but applies specifically to the Accounting Standards for Private Enterprises in Canada, not IFRS. FASB represents the Financial Accounting Standards Board, which provides standards for financial accounting and reporting in the United States, specifically through US GAAP. GAAP refers generically to Generally Accepted Accounting Principles, which encompasses a broader set of accounting principles, not specifically targeting business combinations as IFRS 3 does. Thus, understanding