AcSB Exposure Draft – Business Combinations – Disclosures, Goodwill and Impairment
Apr 23, 2024
On April 23, 2024, the Accounting Standards Board (AcSB) proposed, subject to comments received following exposure, to incorporate into Part I of the CPA Canada Handbook – Accounting, amendments to IFRS 3 Business Combinations and IAS 36 Impairment of Assets.
This AcSB Exposure Draft reflects proposals made by the International Accounting Standards Board (IASB) that the AcSB intends to adopt, subject to deliberating comments received, as Canadian generally accepted accounting principles.
The IASB’s Exposure Draft proposes amendments aimed to improve financial reporting, particularly for business combinations, with a significant focus on disclosure enhancements and simplifying impairment tests. The proposed amendments will also affect how entities perform their goodwill impairment assessments.
The IASB’s Exposure Draft proposes to address the diversity in practice and respond to investor feedback by:
- requiring disclosure of information reviewed by key management personnel about the performance of strategic business combinations;
- enhancing existing qualitative and quantitative disclosures about business combinations, including information about expected synergies, and goodwill;
- directing entities to allocate goodwill and perform impairment assessments at the lowest level monitored by management for the related business; and
- simplifying and improving the calculation of value-in-use.
Comments to the IASB are due by July 15, 2024.
Access the Exposure draft on the AcSB’s website.
