Short answer
SKK 9 addresses two related matters: how the acquisition of a business is accounted for, and when and how consolidated financial statements are prepared. The method is a single one: the purchase method. And the biggest difference from international practice is that goodwill here is amortized, not held constant with an annual impairment test.
| Current version | SKK 9 (2023), for periods beginning on or after January 1, 2025 |
| Method | Only the purchase method, with no alternative, paragraph 9 |
| Date of purchase | When effective control is taken, not legal closure, paragraph 13 |
| Consultant costs | Included in the cost of the combination, paragraph 20 |
| Financing costs | They are not included. They are treated in SKK 3, paragraph 20. |
| Good name | It is amortized over up to ten years when life cannot be valued, paragraph 30. |
| Bad reputation | Recognized immediately as a gain or loss, paragraph 31 |
| Uncontrollable interest | In proportion to identifiable net assets, paragraph 23 |
| Deadline for adjustments | Twelve months after the date of purchase, paragraph 26 |
Verified on November 8, 2026 by Andi Haxhillari, Certified Accountant. Compared with IFRS 9 (2023), paragraphs 1 to 70, effective date variant January 1, 2025, and with the November 2015 variant containing 65 paragraphs, which is attached below.
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The applicable version is SKK 9, updated in 2023. It applies to accounting periods beginning on or after January 1, 2025, on a prospective basis. This is specified in paragraph 69.
The November 2015 version had 65 paragraphs; the 2023 version has 70. The paragraph numbers on this page correspond to those of the version in effect.
Paragraph 4 provides the scope in turn. Identification of the purchaser. Measuring the cost of the combination. Allocating that cost to the acquired assets, liabilities, and provisions. The treatment of goodwill at the time of the combination and thereafter. The circumstances under which consolidated financial statements are prepared and their procedures. As well as separate and combined statements.
The same paragraph provides a practical relief that few are aware of. A controlling entity that is not a public‐interest economic entity may present the separate financial statements under this standard, even if it presents the consolidated financial statements under international standards.
Paragraph 5 excludes three cases: combinations under common control, when the same party controls before and after and that control is not transient; the formation of a joint venture; and the acquisition of a group of assets that does not constitute a business.
The final distinction is practical. Buying a store with equipment, inventory, and employees can be a business. Buying only the inventory and equipment is not.
Paragraph 9 states that all business combinations are accounted for using the purchase method. No alternative is provided.
Paragraph 16 divides the work into three steps. Identification of the acquirer. Measurement of the cost of the combination. Allocation of the cost to the acquired assets, liabilities, and provisions.
The acquirer is the entity that obtains control. When this is not apparent, paragraph 18 provides indicators, namely the higher fair value, the payment in cash or assets, and control over the majority of the management team.
Paragraph 11 removes from the table a case that is often treated incorrectly. The merger of the parent company with a unit it fully controls is not a business combination, because they already formed a single economic unit before.
Paragraph 13 defines it as the date on which the buyer effectively takes control. The legal closing of the transaction is not necessarily the same date.
This has an impact on the results. From the date of acquisition onward, the acquirer recognizes its share of the acquired unit's assets, liabilities, revenues, and expenses. A one-month shift in the date moves the results by one month.
Paragraph 14 allows an exemption. The most recent month's statements may be used if they do not materially differ from the information as of that date.
Paragraph 19 constitutes the cost based on the fair values of the assets given, of the liabilities incurred or assumed, and of the equity instruments issued, plus direct costs.
Paragraph 20 makes the most frequently mistaken distinction. Direct costs, such as advisor fees and notarization, are included in costs. Financing costs are not included. They are treated under IFRS 3.
So the lawyer's and appraiser's fees are added to the cost, while the disbursement fee for the loan used to pay for the purchase is not.
Paragraphs 21 and 22 address the adjustment contingent on future events, that is, the portion of the consideration that depends on future performance. It is included in cost at the date of purchase if it is possible and can be reliably measured. If it becomes possible later, it is treated as a cost adjustment.
Paragraph 23 requires the measurement of identifiable assets, liabilities and contingent liabilities at fair value at the date of acquisition. Deferred tax assets and liabilities are an exception and are measured in accordance with IFRS 11.
The same paragraph sets out the rule for noncontrolling interest. It is measured at the proportion of identifiable net assets, not at the full fair value of the minority interest.
Paragraph 25 establishes a logical time limit. Only those liabilities that exist on the date of acquisition are recognized. The acquirer does not recognize any obligations for future losses. Restructuring is recognized only if it existed as an obligation on that date.
Paragraph 26 sets the period for adjustments. When the initial accounting is incomplete, provisional amounts are recognized, and retrospective adjustments are made within twelve months after the date of acquisition. After this period, only errors are corrected, in accordance with IFRS 1.
Paragraph 29 defines it as the excess of the combination cost over the buyer's interest in the net fair value of identifiable assets, liabilities, and contingent liabilities. It is recognized as an asset.
Paragraph 30 sets out the rule that distinguishes this standard most from international practice. Goodwill is measured at cost less accumulated amortization and accumulated impairment loss. Thus, it is amortized.
When useful life cannot be reliably determined, it is assumed to be up to ten years. The same assumption also appears in paragraph 96 of IFRS 5.
Paragraph 31 addresses negative goodwill, that is, the case when the buyer's interest in net fair value exceeds cost. The first step is not recognition but a reassessment of the identification and measurement of assets, liabilities, and costs. Only the excess remaining after this reassessment is recognized immediately in profit or loss.
So a purchase below value does not go to reserves. It goes to the year's income, and only after it has been verified that it does not stem from an incorrect measurement.
Paragraph 33 requires the parent company to present consolidated financial statements that include all controlled entities, with the exceptions set forth in paragraph 35.
Paragraph 37 provides the presumption. Control is presumed when more than half of the voting rights are held. But paragraph 38 adds that control can also be achieved through options, convertible instruments, or through an agent.
Paragraph 36 extends consolidation to special-purpose entities when the substance of the relationship indicates control. The indicators are in paragraph 46, namely the nature of the activity, decision-making power, and the majority of the benefits or risks.
Paragraphs 39 through 41 remove three reasons often used not to consolidate. Investment organizations are not automatically excluded. Different business activities are not a reason. And the location where the unit operates is not relevant.
Paragraph 42 provides an exception for very rare cases when information cannot be provided without undue cost or delay, or when severe long-term restrictions prevent the mother from exercising her rights.
Paragraph 43 provides the most practical relief. Consolidated financial statements are not required when all controlled entities are immaterial.
Paragraph 47 combines the line items one-for-one, eliminates the parent's investment in each controlled entity, and presents the noncontrolling interest separately.
Paragraph 49 requires the complete elimination of excesses and intra-group transactions. Thus, sales from one company to another are neither recognized as revenue nor as unrealized gain on inventory.
Paragraphs 50 and 51 address dates. The statements are prepared as of the same reporting date. When this is difficult, another date with explanations is allowed, but if the difference exceeds three months, an interim statement is required.
Paragraph 52 requires uniform accounting policies for the entire group, with adjustments where necessary.
Paragraph 53 defines the beginning and the end. Consolidation begins on the date of acquisition and ends on the date control is relinquished, with the difference between the sale price and the carrying amount recognized as gain or loss.
Paragraph 55 presents it as equity, separately from the parent company's shareholders' equity, and the profit attributed as a separate line item in the statement of performance.
Paragraph 56 sets out a surprising rule. The gain or loss is attributed to both parties, even if this pushes the non-controlling interest into a negative surplus. Losses do not stop at zero.
Paragraph 57 states that this standard does not require the presentation of separate statements. They are optional, not mandatory.
Paragraph 59 provides three possible policies for investments in controlled entities when separate statements are prepared: cost minus depreciation; fair value; or the equity method. The policy chosen applies to all investments in the same class.
SKK 9 does not contain any numerical examples. The following example was constructed by us using rounded figures.
Company A buys 80 percent of Company B for 40,000,000 lek. It also pays 1,500,000 lek in advisory and notarization fees. The purchase is financed with a loan, with a 900,000 lek disbursement fee.
The first step is the combination cost. It is 40,000,000 plus 1,500,000, so 41,500,000 lek. The 900,000-lek credit commission is not included, according to paragraph 20.
The second step is to measure what is acquired. The fair value of the identifiable net assets of Company B on the acquisition date is estimated at 36,000,000 lek. The buyer's interest is 80 percent of this amount, i.e., 28,800,000 lek.
The third step is the goodwill. It comes out to 41,500,000 minus 28,800,000, so 12,700,000 lek.
Uncontrolled interest is calculated at 20 percent of 36,000,000 lek, i.e., 7,200,000 lek, and is presented within consolidated equity.
If the useful life of the goodwill cannot be reliably determined, it is amortized over up to ten years, that is, 1,270,000 lek per year. This amortization reduces the consolidated result each year, and many managers don't allow it because they've read that under international practice goodwill is not amortized.
If the price had been 26,000,000 lek rather than 40,000,000 lek, the cost would have been 27,500,000 lek and the buyer's interest 28,800,000 lek. The surplus of 1,300,000 lek is a negative goodwill. According to paragraph 31, the measurements are revalued first, and only the remaining amount is recognized immediately in the year's profit.
Paragraph 62 requires the names and descriptions of the units for the combinations carried out during the period, the date of acquisition, the percentage of capital acquired, the cost and its components, the recognized amounts for each class of assets and liabilities including goodwill, and the recognized gains or losses in profit or loss.
Paragraph 63 requires a reconciliation of goodwill between the beginning and end of the period, showing separately new combinations, impairment losses, disposals, and other changes. It is not required for prior periods.
Paragraph 64 requires that consolidated financial statements include a statement that they are consolidated, the basis of control, changes in reporting dates, and significant restrictions on the transfer of funds as dividends or for the repayment of loans.
Paragraph 66 addresses the case of exclusion from consolidation. The notes provide the name and headquarters of the parent company that prepares the consolidated financial statements and the reason for the exclusion, and the excluded entity publishes the parent's consolidated financial statements together with the annual performance report and the audit report.
The first mistake is including financing costs in the combination cost. Paragraph 20 refers to IFRS 3.
The second mistake is not depreciating the goodwill, believing that the annual impairment test is sufficient. Paragraph 30 requires depreciation.
The third mistake is recognizing a restructuring provision on the date of acquisition when that obligation did not yet exist in the acquired unit. Paragraph 25 prohibits it.
The fourth error is measuring noncontrolling interest at full fair value. Paragraph 23 requires proportionate measurement to identifiable net assets.
The fifth error is the different reporting dates within the group, without an interim statement when the difference exceeds three months. Paragraph 51 requires that statement.
Paragraph 43 states that consolidated financial statements are not required when all controlled entities are immaterial. The materiality assessment must be documented, not assumed.
Yes. This is the national rule, in paragraph 30, and it differs from international practice. When life cannot be assessed, it is assumed to be up to ten years.
Twelve months from the date of purchase, in accordance with paragraph 26. After this period, change is permitted only as a correction of an error under SKK 1.
It depends on whether the assets constitute a business. Paragraph 5 excludes the purchase of a group of assets that are not a business. The presence of employees, processes, and ongoing operations is what makes the difference.
In the year's profit or loss, but only after the measurements have been revalued. This is the two-step approach of paragraph 31.
Yes, unless you are a public‐interest economic unit. This is expressly permitted in paragraph 4.
No. Paragraph 69 requires prospective application.
The content of this page is based on reading the 2023 version on the National Council of Accountancy's website. The paragraphs are summarized in our own words; they are not verbatim quotes.
The full list of conditions for exclusion from consolidation in paragraph 35 was not entirely legible to us. Therefore, we have mentioned here only two of its elements: approval by the remaining shareholders and the publication of the consolidated statements by the parent company. Before relying on this exception, read paragraph 35 in the official text.
The PDF attached below is the November 2015 version with 65 paragraphs, and its paragraph numbering does not match the current version.
IFRS 9 “Business Combinations and Consolidation,” updated in 2023, paragraphs 1 through 70. Effective date: January 1, 2025, with prospective application as provided in paragraph 69.
The standard refers to the “accounting law” without citing its number. The law in force is Law No. 25/2018 “On Accounting and Financial Statements,” as amended by Law No. 87/2026.
Links to other standards. Financial instruments and financing costs in IFRS 3. Amortization and impairment of goodwill in IFRS 5. Contingent liabilities in IFRS 6. Deferred tax in IFRS 11. Investments in joint ventures in IFRS 14.
The following document is the November 2015 version with 65 paragraphs, the one in our library that was in effect until the end of 2024. The version currently in force is the updated 2023 version with 70 paragraphs.
Source of the official text: National Council of Accountancy, standards effective January 1, 2025.