Business combinations – Phase I
Background
The IASB business combinations project has two phases.
This page deals with the first phase of the project. Click for information about Phase II of the business combinations project.
Topics discussed in the first phase
The IASB began a project to review IAS 22 Business Combinations as part of its initial agenda, with the objective of improving the quality of accounting for business combinations and achieving international convergence.
The IASB's primary focus in the first phase of the business combinations project was on these topics:
- the method of accounting for business combinations
- the initial measurement of identifiable assets acquired and liabilities and contingent liabilities assumed
- recognition of liabilities for termination or reducing the activities of an acquiree
- treatment of any excess of the acquirer's interest in the fair value of the identifiable net assets acquired over the cost of the combination
- accounting for goodwill and intangible assets acquired in a business combination
Current status of the project
This project has been completed. IFRS 3 Business Combinations, and revised versions of IAS 36 Impairment of Assets and IAS 38 Intangible Assets, were issued on 31 March 2004.
Project milestones
Date | Development | Comments |
---|---|---|
5 December 2002 |
Exposure Drafts published:
|
Comment deadline 4 April 2003 |
31 March 2004 | IFRS 3 Business Combinations issued | Applies to business combinations for which the agreement date is on or after 31 March 2004 |
31 March 2004 | Revised IAS 36 Impairment of Assets issued | Effective from the beginning of the first annual period beginning on or after 31 March 2004 and to goodwill and intangible assets acquired in business combinations for which the agreement date is on or after 31 March 2004 |
31 March 2004 | Revised IAS 38 Intangible Assets issued | Effective from the beginning of the first annual period beginning on or after 31 March 2004 and to intangible assets acquired in business combinations for which the agreement date is on or after 31 March 2004 |