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.