AERA Platform / IFRS Compliance Suite
IFRS Compliance Suite

IFRS 3 Business Combinations

From deal tracking to goodwill recognition. AERA manages the entire acquisition accounting lifecycle — purchase price allocation, identifiable asset and liability fair values, goodwill or bargain purchase calculation, contingent consideration, and measurement period adjustments.

aera.cloud/ifrs/ifrs3/dashboard
A IFRS 3 — Business Combinations Dashboard + Deal Active deals 3 2 closed · 1 in progress Total consideration € 28.5M Total goodwill recognized € 8.2M Contingent consid. € 3.0M Fair value estimate Measurement period 7 months Acme deal — ends Sep 26 Deal pipeline Due diligence TechVerde S.r.l. Target: €12M In progress PPA in progress Acme Logistics Consid: € 8.5M Goodwill: € 2.8M (prov.) Meas. period Completed DataFlow GmbH Consid: € 14M · GW: € 4.2M Completed Feb 2026 Meridian Services Consid: € 6M · GW: € 1.2M Completed Nov 2025 Purchase price allocation — Acme Logistics 0 2M 4M 6M 8M € 8.5M Consid. +5.7M Tangible +2.4M Intangible -2.4M Liabilities 0 NCI € 5.7M Net assets € 2.8M Goodwill Goodwill = Consideration (€8.5M) − Net identifiable assets (€5.7M) = €2.8M
Acquisition accounting, start to finish
From the first due diligence to annual impairment testing, AERA covers every phase of IFRS 3 compliance with precision and full traceability.
Fair value

Identifiable asset and liability fair values

Recognize and measure all identifiable assets acquired and liabilities assumed at their acquisition-date fair values per IFRS 3.18. Categorize by nature — tangible, intangible (customer relationships, technology, brand), contingent liabilities — with IFRS 13 fair value hierarchy linkage.

  • Tangible assets at market or cost approach fair value
  • Separately identifiable intangibles (customer lists, IP, brands)
  • Contingent liabilities measured at fair value per IFRS 3.23
  • IFRS 13 level classification for each asset and liability
Identifiable assets — Acme Logistics € 3.8M Property, plant & equipment FV Level 2 · Market approach Fleet: €2.1M · Warehouse: €1.4M · Equipment: €0.3M € 1.2M Inventory FV Level 2 € 0.7M Receivables FV ≈ carrying € 1.6M Customer relationships FV Level 3 · MEEM · Useful life: 8 yrs € 0.6M Proprietary software FV Level 3 · Relief from royalty € 0.2M Brand name FV Level 3 · 5 yrs (€ 2.4M) Liabilities assumed Net: € 5.7M Identifiable net assets at fair value
Contingent consideration

Earn-out and contingent consideration management

Track contingent consideration arrangements through their full lifecycle. Initial recognition at fair value, subsequent remeasurement at each reporting date per IFRS 3.58, with P&L impact for changes in estimate. Support for milestone-based and formula-based earn-outs.

  • Initial fair value estimation (probability-weighted, DCF)
  • Periodic remeasurement with P&L or equity classification
  • Milestone tracker with achievement probability
  • Settlement tracking and final true-up at resolution
Contingent consideration — Acme Logistics earn-out Current FV estimate € 3.0M Maximum payout € 5.0M Classification Financial liability Today M1: EBITDA Y1 Target: € 2.5M Achieved · Payout: € 1.0M 2 M2: Revenue Y2 Target: € 18M Prob: 75% · Max: € 2.0M 3 M3: Retention Target: 90% clients Prob: 50% · Max: € 2.0M Fair value remeasurement history Feb 26 Mar Jun Sep Dec Now 2.6M 3.0M P&L impact: +€ 400K YTD
Goodwill

Goodwill calculation with measurement period tracking

Automatic goodwill (or bargain purchase gain) calculation per IFRS 3.32. Track provisional amounts during the 12-month measurement period and record adjustments as they are identified — with full audit trail and journal entry generation.

  • Goodwill = Consideration + NCI − Net identifiable assets
  • Bargain purchase gain recognition through P&L (IFRS 3.34)
  • Measurement period adjustments with retrospective restatement
  • Goodwill allocation to CGUs for annual impairment testing
Goodwill summary — all deals DataFlow GmbH Acquired Feb 2026 · Measurement period closed Net assets FV: € 9.8M Goodwill: € 4.2M Final Acme Logistics Acquired Feb 2026 · Measurement period: 7 months remaining Net assets FV: € 5.7M (provisional) GW: € 2.8M (prov.) Provisional Meridian Services Acquired Nov 2025 · Measurement period closed Net assets FV: € 4.8M GW: € 1.2M Final Total goodwill on balance sheet: € 8.2M
Impairment

Annual goodwill impairment testing (IAS 36)

Allocate goodwill to cash-generating units, monitor impairment indicators, and run value-in-use or fair-value-less-costs-of-disposal calculations. Dashboard shows headroom by CGU with traffic-light status and trend analysis.

  • Goodwill allocation to CGUs per IFRS 3.80
  • Annual impairment test with DCF value-in-use
  • Sensitivity to discount rate and growth rate
  • Impairment loss recognition with allocation waterfall
Goodwill impairment test — FY 2026 Run test CGU: Logistics (Acme + Meridian) Pass Carrying amount (incl. GW) € 12.4M Recoverable amount (VIU) € 16.8M Headroom: € 4.4M (35%) CGU: Data Services (DataFlow) Watch Carrying amount (incl. GW) € 14.0M Recoverable amount (VIU) € 15.2M Headroom: € 1.2M (8.6%) Sensitivity analysis — Data Services CGU WACC +1pp (9.5% → 10.5%) Headroom drops to € 0.3M Risk Terminal growth -0.5pp (2.0% → 1.5%) Headroom drops to € 0.6M Combined stress (WACC +1pp, growth -0.5pp) Impairment: € 0.8M Fail
Disclosure

Automated IFRS 3 disclosure and journal entries

Generate all required acquisition disclosures per IFRS 3.B64-B67: consideration transferred, fair values of identifiable assets and liabilities, goodwill recognized, reasons for goodwill, contingent consideration terms, and pro-forma revenue and profit.

  • Acquisition-date journal entry with full line-by-line detail
  • IFRS 3.B64 — primary factor driving goodwill (synergies, workforce)
  • Pro-forma revenue and profit as if acquisition had occurred at period start
  • Measurement period adjustment disclosure with restated comparatives
Acquisition journal entry — Acme Logistics Export XBRL Account Debit (€) Credit (€) Property, plant & equipment 3,800,000 Inventory 1,200,000 Trade receivables 700,000 Customer relationships (intangible) 1,600,000 Proprietary software (intangible) 600,000 Brand name (intangible) 200,000 Goodwill 2,800,000 Trade and other payables 2,400,000 Cash consideration paid 5,500,000 Contingent consideration (liability) 3,000,000 Total: € 10,900,000 10,900,000 10,900,000
See it in action
A walkthrough of the IFRS 3 module — from deal pipeline through purchase price allocation to goodwill impairment testing.
Video coming soon
3
Deals managed
€ 8.2M
Goodwill recognized
12 mo
Measurement period
Auto
PPA journal entries
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