A business combination refers to a business combination transaction in which an acquirer obtains a controlling stake (50% or more) in another business. This may take the form of a merger or acquisition or a combination. Valuation for merger and acquisition is a complex exercise because in the case of the acquirer, the pre-transaction and post-transaction valuations of the target business will not necessarily be at fair market value but the investment value in anticipation of potential synergies after the transaction. The issue of goodwill measurement is also complicated. Transactions such as the purchase of assets and the formation of joint ventures are not considered business combinations. The International Financial Reporting Standard 3 (IFRS 3) offers insights into the accounting standards and financial reporting for business combinations. It covers principles for recognising and measuring assets and liabilities, measuring goodwill and disclosures.