Step Acquisition

Definition

A business combination achieved in stages, where the acquirer held a previously existing equity interest in the acquiree before obtaining control. Under IFRS 3 and ASC 805, the acquirer must remeasure its previously held equity interest at fair value at the acquisition date and recognise any resulting gain or loss in profit or loss. The total consideration for goodwill calculation purposes includes both the fair value of the newly transferred consideration and the remeasured fair value of the previously held interest.