Business Combination Accounting for a 40-Person SaaS Scale-Up
Overview
What this challenge is about.
You are a financial analyst at DataFlow Analytics. The CFO has asked you to prepare the acquisition accounting under IFRS 3. DataFlow is acquiring 100% of Insightly for €20M: €15M cash, €3M in DataFlow shares, and €2M contingent on Insightly achieving €5M revenue in year one. Insightly's balance sheet shows net assets of €8M (book value), but fair values include: technology €5M, customer relationships €3M, and a patent €1M. Your task is to calculate goodwill, prepare the consolidation journal entries, and draft a memo explaining the treatment of contingent consideration. Success means a complete acquisition analysis ready for the board.
The Brief
What you'll do, and what you'll demonstrate.
How should DataFlow Analytics account for the acquisition of Insightly under IFRS 3, including goodwill calculation and contingent consideration?
Earning criteria — what you'll demonstrate
- Apply IFRS 3 to identify acquirer and measure consideration transferred
- Recognize and measure identifiable assets and liabilities at fair value
- Calculate goodwill and understand impairment implications
- Account for contingent consideration and subsequent changes
Program Fit
Where this fits in your program.
Sharpens the same skills your degree expects you to demonstrate.
Skills
Skills you'll demonstrate.
Each one shows up on your verified credential.
Careers
Roles this prepares you for.
Real titles. Real skill bridges. Pick the one closest to your trajectory.