Edinburgh Research Explorer

Bright pharmaceuticals SE: Accounting for a business combination under IFRS 3

Research output: Contribution to journalArticle

Related Edinburgh Organisations

Original languageEnglish
Pages (from-to)282-294
Number of pages13
JournalAccounting Education - An International Journal (UK)
Issue number3
StatePublished - Jun 2013


This instructional resource familiarizes students with the accounting for business combinations under IFRS 3 and illustrates the uncertainty and professional judgment involved in asset valuation and consolidation. First, students need to assess the quality of information generated under IFRS 3 and fair value accounting. Second, they are asked to account for a business combination by identifying possible input parameters to measure several intangible assets and a contingent liability. Based on their valuation results, they compute the amount of goodwill recognized on the acquisition and assess the effects of their parameter choices on the values of different assets and liabilities. As an optional third task, the case asks students to consolidate the financial statements and evaluate the impact of the acquisition on the financial position of the acquirer. © 2013 Copyright Taylor and Francis Group, LLC.

    Research areas

  • Business combinations, goodwill, IFRS, intangible assets

ID: 21615987