The AcSB is participating in the IASB's initiative to enhance IFRS 3 Business Combinations and IAS 36 Impairment of Assets. The project aims to address the IFRS 3 Post‑implementation Review feedback.
The feedback highlighted insufficient information in the financial statements for investors to understand the performance of an acquired business. Respondents also emphasized the potential ineffectiveness of the goodwill impairment test due to untimely recognition. Proposed amendments include enhancing business combination disclosure under IFRS 3 and modifying the goodwill impairment test in IAS 36.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Accounting Standards for publicly accountable enterprises.