FRS 7 Fair Values in Acquisition Accounting

FRS 7 has been superseded by FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland for accounting periods beginning on or after 1 January 2015. For more information visit:

• icaew.com/newukgaap

Synopsis

FRS 7 sets out the principles of acquisition accounting for business combinations. The identifiable assets and liabilities of the acquired entity are to be included in the consolidated financial statements at their fair values at the date of acquisition. FRS 7 sets out how the fair values of identifiable assets and liabilities should be determined and what 'identifiable assets and liabilities' means. The difference between the sum of these fair values and the cost of acquisition is recognised as goodwill or negative goodwill.

• Read FRC Summary on FRS 7 

Last updated 21 June 2015