Step acquisition
AccountingAlso called: Business combination achieved in stages
The acquisition of control over a company in which an interest was already held. The previously held interest is remeasured to fair value at the date control is obtained, and the difference is recognised in profit or loss.
In plain terms
The reason a company can report a large gain for buying two per cent more of something. The gain is the difference between what the old stake was carried at and what it is now worth, and no cash accompanies it.