This is the fifth Part of the series of articles related to takeovers. You are kindly advised to read the previous Parts, before going through this final Part.
IFRS 3 is applicable only when the acquirer indeed acquires a business as defined by the standard. In all other cases, the acquisition is treated as one of an asset, tangible or intangible.
Whereas in many cases the distinction between purchasing an asset and purchasing a business is rather straightforward, in other cases that may not hold true. In order for an investee to qualify as a business, it must comprise the following three elements: