The cost of the acquisition is determined by the amount of cash or cash equivalents paid as well as the fair values of equity instruments issued and liabilities assumed at the transaction date, in addition to cost directly attributable to the purchase.
The identifiable assets, liabilities and contingent liabilities associated with a business combination are recognised at their fair values applicable at the transaction date, irrespective of possible minority interests.
Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised as goodwill. Goodwill is subject to a regular impairment test. If the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, this excess is recognised immediately in profit or loss.