Business Combinations: Disclosures, Goodwill and Impairment – International Accounting Standards Board
At its meeting on July 25-27, 2023, the IASB discussed (i) changes to IAS 36 Impairment of Assets relating to the impairment test of cash-generating units containing goodwill (impairment test); and (ii) aspects of its package of proposed disclosure requirements for IFRS 3 Business Combinations. The IASB tentatively decided to clarify certain new proposed wording. It also tentatively decided to require an entity to disclose the reportable segments in which cash-generating units containing goodwill are included. The IASB also tentatively decided to explain the difference between management monitoring ‘strategically important’ business combinations for the purpose of subsequent performance disclosure and management monitoring a business associated with the goodwill for the purpose of impairment testing. The IASB tentatively decided to propose the prospective IFRS Accounting Standard Subsidiaries without Public Accountability: Disclosures be amended after its issue to require an eligible subsidiary to disclose quantitative information about expected synergies, subject to the same exemption proposed for an entity applying IFRS 3 in this project. Finally, the IASB also tentatively decided to provide unlisted entities that apply full IFRS Accounting Standards with no exemptions from disclosing information about the subsequent performance of business combinations.
Review the IASB Update on the IFRS Web site.
