SIC-22
Historical
Business Combinations–Subsequent Adjustment of Fair Values and Goodwill Initially Reported
Addressed how to account for adjustments to fair values and goodwill after the initial accounting period of a business combination. Superseded in 2004.
Historical Reference
SIC-22 was withdrawn in March 2004 when the IASB issued IFRS 3 Business Combinations, which superseded SIC-22 by incorporating a formal measurement period concept directly into IFRS 3, providing clearer guidance on adjusting fair values and goodwill after the acquisition date.
This page is retained for historical and comparative reference. Entities should refer to the current standard that superseded this interpretation for authoritative guidance.
Current Standard
IFRS 3 Business Combinations 1
What SIC-22 Addressed (Historical)
What SIC-22 addressed
SIC-22 addressed how to account for adjustments to fair values and goodwill after the initial accounting period of a business combination had been completed. It considered whether entities should adjust the amounts recognised for identifiable assets acquired, liabilities assumed and goodwill when new information emerged during the initial accounting period.
2
The Conclusion It Reached (Historical)
The conclusion it reached
SIC-22 concluded that adjustments to fair values and goodwill identified after the acquisition date should be accounted for retrospectively as if they had been known at the acquisition date. The entity should adjust the carrying amounts of the identifiable assets acquired and liabilities assumed, and adjust goodwill accordingly, until the earlier of the end of the measurement period and the date on which all information relevant to the acquisition is obtained.
3
Where This Guidance Lives Today
Where this guidance lives today
Superseded byIFRS 3 Business Combinations
Why withdrawnThe 2004 standard incorporated a formal measurement period concept directly into IFRS 3
Current statusSuperseded
Glossary
Acquisition date
The date on which the acquirer obtains control of the acquiree, which triggers the initial accounting for a business combination.
Measurement period
The period after the acquisition date during which the acquirer may adjust the provisional amounts recognised for a business combination, established formally in IFRS 3.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows
History & Development
Jan-1998
In January 1998 the Standing Interpretations Committee issued SIC-22 Business Combinations–Subsequent Adjustment of Fair Values and Goodwill Initially Reported.
Apr-2001
In April 2001 the International Accounting Standards Board adopted SIC-22.
Minor consequential amendment to SIC-22
Mar-2004
In March 2004 the Board issued IFRS 3 Business Combinations which superseded SIC-22.
Superseded by IFRS 3