What is the objective of NIIF 3?

The objective of NIIF 3, or the International Financial Reporting Standard 3, is to provide guidance on how to account for business combinations. The standard outlines the principles and criteria for recognizing and measuring assets, liabilities, and non-controlling interests acquired in a business combination, as well as determining the fair value of the consideration given and assessing goodwill or gain from a bargain purchase. This objective aims to ensure that financial statements accurately reflect the economic reality of business combinations, enabling users to make informed decisions and compare financial information. It promotes transparency, consistency, and the proper reporting of business combinations to enhance the quality and reliability of financial statements.

This mind map was published on 8 November 2023 and has been viewed 42 times.