The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend International Financial Reporting Standard (IFRS) 3 Business Combinations and IFRS 11 Joint Arrangements.
The objectives of this project are to:
- resolve the difficulties that arise when an entity is determining whether it has acquired a business or a group of assets; and
- clarify how an entity should account for previously held interest in a business, if acquiring control, or joint control, of that business.
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 IFRSs for publicly accountable enterprises.