Business Combinations II
Measurement attribute for business combinations
The Board discussed the measurement attribute for business combinations and the measurement of non-controlling interests and goodwill in a business combination. The IASB decided that in the final business combinations standard the term fair value should be as defined in IFRS 3. The IASB will revisit the measurement attribute in a business combination when it has concluded its deliberations on fair value measurements. The FASB did not make a decision on the measurement attribute, preferring to wait until the staff has considered whether there are likely to be material differences between fair value measured in accordance with IFRS 3 definition and fair value measured in accordance with SFAS 157.
Measurement of non-controlling interests
The boards also discussed the measurement attribute for non-controlling interests. The staff recommended the boards to decide on a measurement attribute for non-controlling interests, rather than describe the methodology for measuring non-controlling interests as proposed in the exposure draft. The boards asked the staff to develop this approach further. The boards also asked the staff to assess the implications of measuring non-controlling interests at fair value and of allowing an exception to this measurement principle.