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Updating a Reference to the Conceptual Framework (Amendments to IFRS 3) [ED]

Comment period ends on September 27, 2019

Proposed effective date:

The exposure draft does not contain a proposed effective date for the amendments as the intention is to decide on it after the exposure period. However, it is already clear that early application would be permitted if an entity also applies all other updated references (published together with the updated Conceptual Framework) at the same time or earlier.

Next steps:

The IASB will review the feedback it receives on the exposure draft

Last updated:

June 2019



Paragraph 11 of IFRS 3, Business Combinations, refers to the Framework for the Preparation and Presentation of Financial Statements issued by the International Accounting Standards Committee in 1989 and adopted by the Board in 2001.

The Board met on November 15, 2018 to decide whether and, if so, how to update IFRS 3 so that the Standard instead refers to the Conceptual Framework for Financial Reporting, which the Board issued in March 2018.

The Board tentatively concluded that updating the reference without making any other amendments to IFRS 3 could create a conflict between the requirements of IFRS 3 and the requirements for identifying liabilities in IAS 37 Provisions, Contingent Liabilities and Contingent Assets and IFRIC 21 Levies. But the update would not create any other significant conflicts in practice. The Board tentatively decided to begin the updating process immediately, instead of waiting for a possible future project to amend IAS 37.

The Board also tentatively decided to develop proposals to avoid conflicts between IFRS 3 and IAS 37 (as interpreted by IFRIC 21) by updating the reference and adding an exception to the initial recognition requirements in IFRS 3. The exception would specify that levies within the scope of IFRIC 21 and other liabilities within the scope of IAS 37 should be recognized on acquisition only if they would be identified as liabilities applying IFRIC 21 or IAS 37 respectively.


Other de­vel­op­ments

June 2019

On June 14, 2019, the Accounting Standards Board (AcSB) issued an Exposure Draft which corresponds to the IASB’s Exposure Draft on this topic. Com­ments are re­quested by Sep­tem­ber 27, 2019.

May 2019

On May 30, 2019, the International Accounting Standards Board (the Board) published an exposure draft "Reference to the Conceptual Framework (Proposed amendments to IFRS 3)" with three proposed amendments to IFRS 3 "Business Combinations" that would update an outdated reference in IFRS 3 without significantly changing its requirements. Comments are requested by September 27, 2019.

April 2019

On April 12, 2019, the IASB® staff updated the work plan to indicate that the Board expects to issue an Exposure Draft in June 2019.

January 2019

On January 25, 2019, the IASB staff updated the work plan to indicate that the Board expects to issue an Exposure Draft in Q2/2019.

December 2018

On December 14, 2018, the IASB staff updated the work plan to indicate that the Board expects to issue an Exposure Draft in the first half of 2019.


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