Assembled Workforce Value

Definition

The incremental cost a hypothetical acquirer would incur to recruit, hire, and train an equivalent workforce to replace the existing team of an acquired business. Although assembled workforce is not separately recognised as an intangible asset under IFRS 3 (it does not meet the contractual-legal or separable criterion), it must be estimated as a contributory asset charge in multi-period excess earnings calculations to isolate the earnings attributable to other identified intangibles.