The Board first discussed the recognition of contingent liabilities in a business combination. The Board concluded that only liabilities that meet the IASB Framework's definition of liabilities should be recognised as part of the combination. Therefore, stand-alone contingent liabilities would not be recognised.

The Board further discussed the principle by which assets and liabilities should be considered part of the business combination. The Board concluded that only identifiable assets and liabilities that exist at the date of combination should be recognised. The Board will further develop this principle and discuss its application.

The Board decided to amend IAS 28 and IAS 31 to require that an investment that moves from the equity method of accounting to IAS 39 accounting be measured at fair value, not at the carrying amount of the equity method investment, when significant influence is lost. Further, the Board decided to require an investment be fair valued when control is lost and significant influence was or was not retained.

The Board decided that when the investment is fair valued, all amounts in equity (for instance, translation adjustments, net investment hedges) should be recycled to income. This accounting would be required regardless of how the change occurred (such as sale of shares or dilution of shares). If an entity has significant influence somehow, only that portion of the investment lost would be recycled from equity.