Business combinations based on IFRS 3R

IFRS 3 Business Combinations has been changed by International Accounting Standards Board (IASB) replacing the old version by IFRS 3R which will be effective starting on July 2009.The purpose of this thesis is to evaluate the thedevelopments concerning business combinations and disclose its importance for firms which recent changes been made on this standard. Various examples relating these changes are used to clarify the application of this standard.Starting from International Accounting Standard 22, International Financial Reporting Standard 3 and IFRS 3R analysed from the stand point of methods used, what kind of changes been made on these standards and their effect on their financial statements.Key WordsInternational Financial Reporting Standard revised IFRS 3, IFRS 3 Business Combinations, International Accounting Standard IAS 22, International Accounting Standard Board.