Business Combinations II
The FASB staff joined the IASB for this session. The IASB was asked to consider and indicate their preferences on certain issues that had been discussed by the FASB, regarding the on-going drafting of the phase II exposure draft. The IASB was not asked to make decisions.
The IFRS 3 definition of a 'business combination' currently differs from the FASB equivalent. After some discussion, the Board agreed that both definitions required improvement and this should be taken into account in determining a common definition for this project. As an alternative, the IASB indicated that it would be prepared to go forward with the FASB definition.
The issue of different drafting around the same principles was discussed (i.e. to use FASB language and IASB language - presumably in different documents - but to mean the same thing). The FASB had indicated that they would be willing to proceed on that basis. The IASB raised concerns as the intention of this project was to issue a single document.