IFRS 3 — Updating a reference to the Conceptual Framework


In March 2018, the IASB issued the 2018 Conceptual Framework and most references to the Framework included in IFRSs were updated to the 2018 Framework at that time. However, paragraph 11 of IFRS 3 Business Combinations, which still refers to the 1989 Framework, was not updated as this could have caused conflicts for entities applying IFRS 3.

Potential conflicts occur as the definition of assets and liabilities in the 2018 Framework differ to those in the 1989 Framework potentially leading to day 2 gains or losses post-acquisition for some balances recognised.

The purpose of this project is to find a possibility to update the reference in a way that avoids the conflicts identified.


Current status of the project

This project has been completed. The IASB issued Reference to the Conceptual Framework (Amendments to IFRS 3) on 14 May 2020.


Project mile­stones

Date De­vel­op­ment Comments
November 2018 Issue first discussed by the IASB
30 May 2019 ED/2019/3 Reference to the Conceptual Framework (Proposed amendments to IFRS 3) published Comments requested by 27 September 2019
14 May 2020 Reference to the Conceptual Framework (Amendments to IFRS 3) issued amendments are effective for annual reporting periods beginning on or after 1 January 2022


Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.