Post-implementation Review of IFRS 3 Business Combinations
The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to review IFRS 3 Business Combinations to provide input on the standard’s effects and whether it is working as intended.
The IASB’s review aims to assess whether:
- it provides financial statement users with useful information;
- any area represents implementation challenges, and as a result, impairs the consistent implementation of the requirements; and
- unexpected costs have arisen when preparing, auditing or enforcing its requirements or when using the information that it provides.
The AcSB participates in the consultations and activities on the project to ensure that Canadian entities’ financial reporting needs are considered by the IASB. The review of IFRS 3 may lead to the IASB making minor amendments to the standard, preparing an agenda proposal for a broader revision of the standard, or perhaps no changes at all.
IASB Feedback Statement – Post-implementation Review: IFRS 3 Business Combinations
June 29, 2015. The IASB has issued a Feedback Statement on the post-implementation review of IFRS 3. The review shows general support for the accounting requirements in the standard but identifies some areas where further research will be undertaken, including accounting for goodwill.
AcSB Response – Post-implementation Review of IFRS 3 Business Combinations
On May 30, 2014, the AcSB submitted a comment letter responding to the IASB’s Request for Information issued in January 2014. The letter strongly supports post-implementation reviews and generally views IFRS 3 as a workable standard. However, the letter points out some aspects of IFRS 3 that are challenging from an application perspective. The letter notes that the single biggest challenge is in the determination of what constitutes a business and, therefore, whether a transaction is a business combination or an asset acquisition. Read the AcSB letter posted by the IASB.
AcSB Decision Summary – May 14-15, 2014
The AcSB discussed the points to be included in its response letter to the IASB’s Request for Information, “Post-implementation Review: IFRS 3 Business Combinations.” In developing its response, the AcSB obtained input from stakeholders with experience in applying IFRS 3 and its User Advisory Council.
Canadian stakeholders are encouraged to respond directly to the IASB by the May 30 comment deadline.
AcSB Decision Summary – February 12, 2014
The AcSB approved a plan to develop an informed response to the IASB’s Request for Information, “Post-implementation Review: IFRS 3 Business Combinations.” This plan includes consulting with its User Advisory Council and also undertaking targeted outreach with Canadian stakeholders that have applied IFRS 3 in practice.
Canadian stakeholders are encouraged to submit their comments directly to the IASB by May 30, 2014.
Request for Information – Post-implementation Review of IFRS 3 Business Combinations
February 4, 2014. The IASB has issued a Request for Information to seek input on the effect of implementing IFRS 3 and whether the standard is working as intended. Canadian stakeholders are encouraged to submit their comments to the IASB by May 30, 2014.
Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.