Explain the Four Key Steps Involved in the Acquisition Method

Essay

Explain the four key steps involved in the acquisition method of accounting for business combinations under AASB 3.
a.Identify an acquirer
b.Determine the acquisition date.
c.Recognise and measure the identifiable assets acquired,the liabilities assumed,and any noncontrolling interest in the acquiree.
d.Recognise and measure goodwill or a gain from a bargain purchase.
The above steps result in determining the existence of any goodwill or gain on bargain purchase which must be accounted for.