IFRS® Standards

Definition of a Business (Amend IFRS 3)

Summary

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.

Staff Contact(s)

Michelle Thomas, CPA, CGA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to September 2015

  • Approving project

    The IASB approved the project in September 2015

  • Consulting stakeholders

    AcSB Exposure Draft issued August 2016

    IASB Exposure Draft issued June 2016

    Public outreach took place August 2016 October 2016

    The AcSB consulted with its IFRS Discussion Group in September 2016

  • Deliberating feedback

    The IASB and the AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

    The IASB plans to issue that final amendments in October 2018

Meeting & event summaries


October 13, 2016

AcSB Decision Summary – October 13, 2016

The AcSB discussed and approved its response letter to the IASB’s Exposure Draft, “Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11),” subject to drafting changes.

September 21, 2016

AcSB Decision Summary – September 21-22, 2016

The AcSB discussed the points to be included in its response letter to the IASB’s Exposure Draft, “Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11),” after considering input received from the AcSB’s IFRS Discussion Group. The AcSB decided to encourage the IASB to amend the definition of a business in a manner that results in high-quality and common global reporting between IFRSs and U.S. GAAP.  In addition, AcSB members advised the AcSB Chair on points to raise at the September 2016 meeting of the Accounting Standards Advisory Forum on the IASB’s proposals to amend the guidance on business combinations (see the Forum’s Agenda Papers 5 and 5B). 

The AcSB encourages stakeholders to share their views on the Exposure Drafts issued by the IASB and AcSB by submitting comment letters by October 31, 2016.

News


October 31, 2016

News

AcSB Response – Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11)

On October 31, 2016, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in June 2016. Overall, the letter agrees with the narrow-scope amendments to IFRS 3 Business Combinations and IFRS 11 Joint Arrangements. The letter commends both the IASB and the FASB for taking action to support the interpretation of the standards on business combinations (i.e., IFRS 3 and Proposed Accounting Standards Update No.2015-330 Business Combinations (Topic 805)) that will result in a more consistent application globally. The letter encourages both Boards to seek high-quality solutions that will result in more comparable financial reporting outcomes in the U.S. and globally. Accordingly, the letter provides some recommendations to help achieve this goal. Although the letter agrees with the proposed amendments to IFRS 11, it also expresses concern over addressing the remeasurement of previously held interests for changing ownership interests on a transaction-by-transaction basis, rather than holistically. Read the AcSB letter posted by the IASB.

August 8, 2016

News

AcSB Exposure Draft – Definition of a Business and Accounting for Previously Held Interests (Proposed amendments IFRS 3 and IFRS 11)

August 8, 2016. The AcSB has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by October 31, 2016.

July 5, 2016

News

IASB Exposure Draft – Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11)

July 5, 2016. The IASB has issued an Exposure Draft proposing amendments to IFRS 3 Business Combinations and IFRS 11 Joint Arrangements. Canadian stakeholders are encouraged to submit their comments to the IASB by October 31, 2016.

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.