Importance The topic of the study is determined by the analysis of IFRS 3 Business Combinations, which requires disclosure about the transaction or other event when the acquiring party obtains control over one or more businesses to be included in consolidated financial statements. Objectives The study aims to assess the capitalized value of business processes that form the fair value of a business combination for its inclusion into consolidated financial statements. Methods The methodology of the study rests on the concept of assessing the market component of the value of the exchange deal, and the analysis of sufficiency of investor's property rights providing control over the investee. Results We offer analytical and prognostic positions to assess the effectiveness of assets based on the model of business value creation. In addition, we characterize the acquisition method, which is used to form the capitalized value of the combined business. The paper gives special attention to identification of buyers in the capacity of the investor receiving the control over the investee; date of acquisition of control; the structure of property rights providing the investor with control over the investee; recognition and measurement of acquired identifiable assets and liabilities, and the fair value of the investee. Conclusions Knowing the content and analysis of business processes will enable users of information about business combinations to understand the components of the investee's value when reporting the indicators of combined business in the opening consolidated financial statements.
Keywords: business combination, investment business processes, control, investee, fair value
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