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AASB 3 - Business Combinations
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Summary 
Developments, Key Differences & History 
Compared to IFRS 
Interpretations 
Rejection Notices 
Questions & Answers 
Articles 
AASB website 

 
Comparison between AASB 3 and IFRS 3 
 
Additions 
Aus 1.1  
Which entities AASB 3 applies to, ie. reporting entities and general purpose financial reports.  
 
Aus 1.2  
The application date of AASB 3, ie. annual reporting periods beginning 1 January 2005.  
 
Aus 1.3  
Prohibits early application of AASB 3.  
 
Aus 1.4  
Makes the requirements of AASB 3 subject to AASB 1031 Materiality.  
 
Aus 1.5  
Explains which Australian Standards have been superseded by AASB 3.  
 
Aus 1.6  
Clarifies that the superseded Australian Standards remain in force until AASB 3 applies.  
 
Aus 1.7  
Notice of the new Standard published on 22 July 2004.  
 
Deletions  
78  
Transitional provision and effective date. An entity must bring business combinations to account in accordance with IFRS 3 where the agreement date is on or after 31 March 2004.  
 
79  
IFRS 3 applies prospectively to goodwill acquired in a business combination for which the agreement date was before 31 March 2004.  
 
80  
Goodwill previously recognised as a deduction from equity cannot be recognised in the profit or loss on disposal of the business or impairment of the cash generating unit.  
 
81  
Negative goodwill from a business combination with agreement date before 31 March 2004 must be de-recognised and adjusted against the opening balance of retained earnings.  
 
82  
Intangibles from a business combination with agreement date before 31 March 2004 which are not identifiable per IAS 38 Intangible Assets must be reclassified as goodwill.  
 
83  
The notional goodwill or negative goodwill in respect of investments accounted for by the equity method acquired on or after 31 March 2004 must be measured and recognised in accordance IFRS 3.  
 
84  
IFRS 3 applies prospectively to the notional goodwill or negative goodwill in respect of investments accounted for by the equity method acquired before 31 March 2004.  
 
85  
Application to business combinations and goodwill before the required dates of IFRS 3 is permitted provided timely valuations were previously obtained and the revised versions of IAS 36 Impairment of Assets and IAS 38 are applied at the same time.  
 
86  
Reference to superseded IAS 22 Business Combinations. 
 
87  
Reference to superseded Interpretations SIC 9, 22 and 28.