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IASB issues narrow-scope amendments to enhance the definition of a business in IFRS 3

  • IASB document Image

Oct 22, 2018

The IASB has issued amendments to IFRS 3 that are intended to "help companies determine whether an acquisition made is of a business or a group of assets."

The amendments highlight that "the output of a business is to provide goods and services to customers, whereas the previous definition focused on returns in the form of dividends, lower costs or other economic benefits to investors and others."

The amendments are effective for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020. Early adoption is permitted.

For more information, see Deloitte's IFRS in Focus newsletter as well as the press release on the IASB's Web site.

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