%0 Journal Article
%T Asset Acquisition or Business Combination? Application of Definition of a Business in  Real Estate Industry
%A Zhe Ruan
%J Open Journal of Accounting
%P 9-16
%@ 2169-3412
%D 2021
%I Scientific Research Publishing
%R 10.4236/ojacct.2021.101002
%X The International Accounting Standards Board <em>issued Definition of a Business (Amendments to IFRS 3)</em> on 22 October 2018. The amendments clarify the definition of a business, with the aim of helping entities to determine whether a transaction should be accounted for as an asset acquisition or a business combination. However, it remains ambiguous whether an acquired contract for outsourced property management, which is common in real estate industry, constitutes a substantive process. We adopt a comprehensive test approach to make the assessment and conclude the approach is more objective and easy to implement. Apart from it, we also recommend further clarification and guidance of standards in this regard.
%K Business Combination
%K Asset Acquisition
%K IFRS 3
%K Real Estate Industry
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=106446