Critically evaluate the Australian requirements for accounting for business combinations.
In your discussion you should specifically address the following issues:
• Exclusions from the scope of Accounting Standard AASB3 Business Combinations.
• The implications of the requirement to use the acquisition method of accounting for business combinations
• The identification of an acquirer in a business combination
• The determination of fair values of assets in a business combination
• The reasons for the choice of fair value to measure assets and liabilities acquired in a business combination
• The nature and treatment of goodwill or bargain purchase arising on a business combination.
• The two different ways in which a business combination can be accomplished.