Accounting Standards and Guidance

FRC Financial Reporting Standards (FRSs)

UK/Irish accounting framework (effective for periods beginning on or after 1 Jan 2015)

FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland

Business Combinations and Goodwill
Section 19 – Scope of this section
19.1This section applies to business combinations. [AMD 421]
19.2This section does not apply to:
 (a)the formation of a joint venture; and
 (b)the acquisition of a group of assets that does not constitute a business. [AMD 422]
PBE19.2AIn addition, public benefit entities shall consider the requirements of Section 34 Specialised Activities in accounting for public benefit entity combinations.
AMD 421

Amendment

Paragraph 19.1 amended by Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland – Triennial review 2017 – Incremental improvements and clarifications (issued December 2017)

Effective date

01/01/2019

Previous text

19.1 This section applies to accounting for business combinations. It provides guidance on identifying the acquirer, measuring the cost of the business combination, and allocating that cost to the assets acquired and liabilities and provisions for contingent liabilities assumed. It also addresses accounting for goodwill both at the time of a business combination and subsequently.
AMD 422

Amendment

Paragraph 19.2 amended by Amendments to FRS 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland – Triennial review 2017 – Incremental improvements and clarifications (issued December 2017)

Effective date

01/01/2019

Previous text

19.2 This section specifies the accounting for all business combinations except:

(a) the formation of a joint venture; and

(b) acquisition of a group of assets that does not constitute a business.
Top