Final stage
The Interpretations Committee received a request asking for clarification on the accounting for a pre-existing relationship that is not a reacquired right, between the acquirer and the acquiree in a business combination.
The Interpretations Committee noted that paragraphs B51 to B52 of IFRS 3 and the illustrative example in paragraphs IE54 to IE57 of the Illustrative Examples to IFRS 3 are clear that the 'at-market' component of a pre-existing relationship, that is not a reacquired right, is included in goodwill following the business combination.
The Interpretations Committee concluded that it did not expect significant diversity to arise in practice. Therefore, the Interpretations Committee decided to propose that the Board should not add this issue to Annual Improvements.
