IFRS 3 acquisition accounting template
An Excel template that accounts for a business combination under IFRS 3, from the business test to the note: what was paid, what was acquired at fair value, the deferred tax on every adjustment, goodwill and non-controlling interests. It comes with a fully worked step acquisition for a fictitious group.
What it does
Applies the business test, including the optional concentration test, and records control, the acquirer and the acquisition date.
Measures the consideration transferred – cash, shares at fair value, deferred consideration at present value, probability-weighted contingent consideration and replacement share awards – and takes out the separate transactions (settling a pre-existing relationship, payments for post-combination services) and the acquisition costs.
Remeasures a previously held interest in a step acquisition, with the gain or loss and the treatment of the amounts in OCI.
Values up to six identified intangibles by relief from royalty or multi-period excess earnings, with mid-year discounting, an optional terminal value and tax amortisation benefit – or takes a value from a valuation report. Assembled workforce stays in goodwill.
Allocates the price across 32 lines of assets and liabilities at book value and provisional and final fair value, with deferred tax at each line's own rate and the IFRS 3 measurement exceptions flagged.
Calculates goodwill or a bargain purchase with NCI at fair value or proportionate share, splits goodwill between owners and NCI, guides the bargain purchase reassessment and allocates goodwill to cash-generating units.
Logs measurement-period adjustments and moves the provisional amounts to final ones, with goodwill reconciled.
Unwinds the fair value adjustments over five years, together with the deferred and contingent consideration, the separate transactions and goodwill impairment, and shows the effect on profit for owners and NCI.
Produces the journal at the acquisition date, the acquisition-cost and OCI journals, the consolidation journal for any later year, the B64 and B67 note figures, a drafted opening paragraph, a 20-item disclosure checklist and 19 automatic checks.
What you get
One Excel workbook (.xlsx) with Instructions, the blank template and a worked example: a fictitious coffee roaster bought in two steps (20% already held as an associate, 60% acquired) for cash, shares, deferred consideration and an earn-out, with three identified intangibles and measurement-period adjustments.
Clearly marked input cells, protected formulas and built-in checks, with a status line on every tab.
Works in Microsoft Excel 2010 or later (Windows or Mac). No macros.
Scope
One business combination with a single acquiree in one presentation currency, under IFRS Accounting Standards. Not covered: combinations under common control, reverse acquisitions, foreign acquirees, insurance contracts and NCI components other than present ownership interests. The valuation blocks are a simplified model – for material intangibles, use a valuation specialist.
Consolidating the group afterwards? Use it with the free Consolidation template. For a reorganisation under common control, see the Merger accounting template.
Designed for finance teams, auditors and advisers accounting for acquisitions. It is a working aid: it does not replace the Standards or professional judgement, and its scope and limitations are set out in the Instructions tab.
