EFRAG issues final endorsement advice on amendments to IFRS 3 regarding the definition of a business.
28 Mar, 2019
The European Financial Advisory Group (EFRAG) has issued its final endorsement advice letter relating to the use in the European Union of ‘Definition of a Business (Amendments to IFRS 3)’ (“the Amendments”).
The Amendments, published in October 2018 aimed at resolving the difficulties that arise when an entity determines whether it has acquired a business or a group of assets.
EFRAG recommends the endorsement of the Amendments. EFRAG’s assessment is that the Amendments meet all the technical endorsement criteria of the IAS Regulation and are conducive to the European public good.
EFRAG also considers that the overall benefits of the amendments are likely to outweigh the associated costs to implement them.
A press release and the endorsement advice letter to the European Commission are available on the EFRAG website. EFRAG has also updated its endorsement status report.
