Measurement Period (Business Combinations)

Definition

The period following a business combination during which the acquirer may adjust the provisional amounts recognised at the acquisition date as new information is obtained about facts and circumstances that existed at that date. Under IFRS 3 and ASC 805, the measurement period cannot exceed 12 months from the acquisition date. Adjustments made during this period are retrospective, meaning comparative information for prior periods is restated as if the final values had been determined at the acquisition date.