Updated insights: CIFRS 3 and CIFRS 16

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CIFRS 16 ‘Leases’ is a standard that impacts most reporting entities that apply CIFRS Accounting Standards and are involved in leasing assets and can have a substantial impact on the financial statements of lessees of property and high-value equipment.

Although CIFRS 16 has been in effect since 2019, there are still a number of areas that can be challenging in practice. Our ‘Insights into CIFRS 16’ series summaries key areas of the standard and aims to demystify those key requirements that are challenging to apply in practice. This article considers the definition of a lease when applying CIFRS 16.

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In a business combination, an acquirer may enter into transactions with the vendor and/or acquiree that are not part of the exchange for the acquiree. Under CIFRS 3, these transactions must be identified and, where appropriate, accounted for separately.

As discussed in Insights into CIFRS 3: Consideration transferred, only consideration transferred in exchange for the acquiree is included in the measurement of goodwill (or a gain on a bargain purchase). Separate transactions are excluded and may give rise to a separate asset, liability, gain or loss.

This article explores the identification and accounting of such transactions.

(Updated 24 June 2026)