AcSB Exposure Draft - Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11)
Aug 08, 2016
On August 8, 2016, the Accounting Standards Board (AcSB) has issued an Exposure Draft that corresponds to the IASB’s Exposure Draft of proposed amendments to IFRS 3, Business Combinations and IFRS 11, Joint Arrangements, that was issued for comment on June 28, 2016. It clarifies both the definition of a business and how to account for previously held interests. Stakeholders are encouraged to submit their comments by October 31, 2016.
The proposed amendments provide:
- clearer application guidance to help distinguish between a business and a group of assets when applying IFRS 3; and
- clarification on how a company should account for previously held interest in a business, if acquiring control, or joint control, of that business.
The proposed amended application guidance on the definition of a business in IFRS 3 arises from the Board’s Post-implementation Review (PIR) process, which is conducted on each Standard and major amendment approximately two years after their effective dates. The IFRS 3 PIR shows general support for the accounting requirements in the Standard but identifies some areas where further research will be undertaken. The proposed amendment to accounting for previously held interests was developed through the IFRS Interpretations Committee.
Additional information
Please click for:
- Access to the exposure draft on the AcSB website
- Our project page on IFRS 3 — Definition of a business
- Our project page on IFRS 3/IFRS 11 — Remeasurement of previously held interests