IASB publishes "Investor Perspectives" article on acquisitions reporting
Mar 27, 2024
On March 27, 2024, the International Accounting Standards Board (IASB) issued the latest 'Investor Perspectives' issue. In this edition, IASB Board member Zach Gast discusses proposed enhancements to acquisitions reporting and revisions in Exposure Draft (ED) ‘Business Combinations — Disclosures, Goodwill and Impairment’ to equip investors with better tools for evaluating companies’ acquisitions.
The IASB is soliciting feedback on proposed amendments to IFRS 3 Business Combinations. These amendments would necessitate companies to divulge the objective and associated performance targets of their most significant acquisitions, along with whether these targets are achieved in subsequent years.
Further, companies must furnish details regarding anticipated synergies for all substantial acquisitions. Nevertheless, the proposals ensure that companies need not disclose information that could jeopardize their acquisition objectives. Additionally, the IASB suggests complementary adjustments to IAS 36 Impairment of Assets to refine the impairment test. Interested parties have until July 15, 2024, to provide their comments on the ED.
Access the press release and the Investor Perspectives article on the IASB’s website.
