Post-implementation review of IFRS 3

Date recorded:

Prior to the discussion of the post implementation review of IFRS 3, the staff gave a brief update to the Board on the IFRS 8 Operating Segments review. The report was published in the previous week summarising the findings and included in the document were areas for further follow up. The staff informed the Board that they would be presenting a paper to the Board later this year with proposals on how to follow up on those particular issues, identifying those which are suitable for a narrow-scope amendment or those that will require a broader project. The Board agreed with this approach.

In relation to the post implementation review of IFRS 3, the staff outlined their proposed scope and approach.

It is expected that the scope will include:

  1. the whole Business Combinations project (i.e. the first and the second phases of the project) which resulted in the issuance of IFRS 3 (2004) and IFRS 3 (2008); and
  2. any consequential amendments resulting from the Business Combinations project (i.e. amendments to IAS 12, IAS 27, IAS 36, IAS 38 etc.)

The proposed approach will be:



Phase I of the PIR including identify the areas to be included in the RFI, including list in Appendix 1.

July 2013–November 2013

Publication of RFI

December 2013–January 2014

Phase II of the PIR

Public consultation (120 days)


Analysis of public comments and

extensive outreach

Comment deadline

April 2014–May 2014


Undertaken during 1st half of 2014

Publication of Feedback Statement 3


3rd quarter of 2014

Question 1A: Does the IASB agree with the preliminary scope of the PIR?

Question 1B: Do you think that Appendix 1 is a good initial assessment of the areas in which the implementation of IFRS 3 might have been challenging? Do you think that there are any other issues that should be added?

Question 2: Does the IASB

  1. Agree with the overall plan set out in this paper for the PIR of IFRS 3?
  2. Have any questions on how we are thinking of carrying out Phase 1 of the PIR?
  3. Have any suggestions on the initial plan of consultations and activities, which aims to lead to the publication of the RFI?

Several members felt that the scope was too wide as they did not want to give the impression to respondents that everything and anything was open to discussion again and potentially could be changed. The staff clarified that the review is focused on the guidance that they have developed rather than picking out parts to review. Staff want to review how entities have implemented the standard and how they have applied the package. The purpose of Phase 1 is to start with the full list of issues and based on feedback from respondents, see if this can be scaled back for the purposes of the RFI.

Members wanted to be clear that they would not be open to change everything and that the wording should be drafted carefully not to raise expectations. It was further noted that some jurisdictions carved out negative goodwill and they should be included in the review so their views can be heard.

One member felt that five months seemed a long time to clarify the issues to be addressed in the RFI.

One member requested that business combinations under common control be included on the list. The staff clarified that they are looking at this as a separate project. On the RFI they will include this and clarify that this is being looked at separately.

One member wanted to clarify how the FASB felt about everything being on the table again particularly because it was a convergence standard, and how would they work with the FASB on this. The staff clarified that the FAF have already completed their review of their business combinations standard equivalent to IFRS 3 and reported this to the FASB. The FASB are now standing by waiting for the IASB to complete their process and obtain feedback. The FASB have already agreed to assist the IASB with their outreach to US entities.

The Board agreed with the scope and plan outlined in the paper.

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