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  • IAS 22 Business Combinations


  • SIC D28 Issued July 2001.
  • Final SIC 28 Business Combinations – 'Date of Exchange' and Fair Value of Equity Instruments was approved by the IASB in December 2001. The text below does not yet reflect the final approved version.

Summary of SIC D28

SIC D28 addresses when the date of exchange occurs in a purchase business combination in which shares are issued as the purchase consideration. If an acquisition is achieved in a single exchange transaction, the date of exchange is the date on which the acquirer obtains control over the net assets and operations of the acquiree. If an acquisition is achieved in stages by successive share purchases, the fair value of the shares issued as purchase consideration should be determined at the date that each exchange is recognised.

SIC D28 also addresses when it is appropriate to use a price other than a published price at the date of exchange when determining the fair value of an acquirer's shares that are quoted in an active market. D28 proposes that the published price of a share in an active market at the date of exchange should be considered the best evidence of the share's fair value. Another price should be used only if it can be demonstrated that a price fluctuation is undue, and the other price provides a more reliable measure of the share's fair value.

Issued for public comment on 9 July 2001. Comment deadline 10 September.

Click for Press Release (PDF 44k).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.