At its meeting on October 24, 2017, the IASB met to finalize the amendments to IFRS 3, Business Combinations on the definition of a business.

The Board tentatively decided to: (i) clarify the description of the screening test; (ii) remove the proposed Illustrative Example J Acquisition of oil and gas operations; (iii) specify that the gross assets considered in the screening test exclude cash and cash equivalents acquired, and confirm the Board’s tentative decision in April that those gross assets also exclude goodwill resulting from the effects of deferred tax liabilities; and deferred tax assets; and (iv) confirm all the other tentative decisions made at its April and June 2017 meetings.

Also, the Board tentatively decided not to re-expose the amendments to IFRS 3; and that the amendments to IFRS 3 should apply for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning or after January 1, 2020, with earlier application permitted.

Review the IASB Update and podcast on the IASB's Web site.