IFRS® Standards

Updating a Reference to the Conceptual Framework (Amendments to IFRS 3)

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IFRS 3 Business Combinations.

The objective of this project is to update the reference in IFRS 3 to The Framework for the Preparation and Presentation of Financial Statements with the revised Conceptual Framework for Financial Reporting. As part of this project, the IASB will identify any possible unintended consequences of replacing the reference and, if necessary, it will propose ways of avoiding those consequences. 

This project also includes removing conflicts between IFRS 3 and other IFRS® Standards by adding an exception to the recognition requirements in IFRS 3 for levies within the scope of IFRIC 21 Levies and for other obligations within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets.

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 Standards for publicly accountable enterprises.

Staff Contact(s)

Grace Flis, CPA, CA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to November 2018

  • Approving project

    The IASB added the project to its agenda in November 2018.

    The IASB is expected to issue an Exposure Draft in the first half of 2019.

  • Consulting stakeholders

    IASB Exposure Draft issued in May 2019

    AcSB Exposure Draft issued in June 2019

  • Deliberating feedback

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

    The IASB is expected to issue the final amendments in the second quarter of 2020

  • Final pronouncement

Meeting & event summaries


News


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.