IASB publishes "Investor Perspectives" article on acquisitions reporting
27 Mar, 2024
The IASB has issued the latest issue of 'Investor Perspectives'. In this edition, IASB Board member Zach Gast discusses proposed enhancements to acquisitions reporting and the revisions in Exposure Draft (ED) ‘Business Combinations — Disclosures, Goodwill and Impairment’ that aim to equip investors with better tools for evaluating companies’ acquisitions.
The IASB is presently 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 would be mandated to 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 15 July 2024 to provide their comments on the ED.
For more information, see the press release and Investor Perspectives article on the IFRS Foundation’s website.
