E-business acquisition under IFRS 3 : An analysis on a revised standard

• Main Authors: Thunvall, Jacob, Holmlund, Tim
• Format: Others
• Language: English
• Published: Umeå universitet, Företagsekonomi 2014
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:umu:diva-98031

In this study we have analysed if the revised IFRS 3 has changed the accounting procedure of e-business acquisitions, in other words when an e-business (online business) acquirer another e-business. We have chosen to conduct the study with CDON Group AB as a reference company. The study is primarily using a mixed research method, in other words a mix of quantitative and a qualitative method. The data analysis applies the philosophy of positivism. In this thesis we have assumed the entity theory to be true, and this theory is a suitable accounting theory, which views the company itself as the responsible one for its liabilities and assets. The assumption that the entity is a separate person enables us to view the company apart from its owners and thereby assume that the management of assets, and the acquisitions are an act of CDON Group’s best interest. We have analysed the official financial statement of CDON Group AB from the years 2007-2013, but also the financial statements from each of the four acquired companies, NLY Scandinavia AB, Gymgrossisten Nordic AB, Rum21 AB and Tretti AB. Findings show key differences in the revised IFRS 3 when compared to its previous versions. Main differences are the transaction cost that should be included in the consideration, furthermore, how to divide the consideration when including an additional acquisition. The study discusses that the revision of the IFRS 3 might only affect the reporting procedure of an acquisition, the underlying figures are still there, however, the underlying figures might have been included in another entry and/or changed part in the statement. Thereby the study is identifying a change in the reporting procedure of acquisitions after the revised IFRS 3.