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IASB publishes Request for Information on the post-implementation review of IFRS 3

  • IASB (International Accounting Standards Board) (blue) Image

30 Jan 2014

The International Accounting Standards Board (IASB) has issued a Request for Information (RFI) seeking comments from stakeholders to identify whether IFRS 3 'Business Combinations' provides information that is useful to users of financial statements; whether there are areas of IFRS 3 that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.

The post-implementation review process for IFRS 3 was originally expected to commence in 2012 but it was only formally announced to begin on 25 July 2013. Since then the IASB has been gathering information to determine the scope of the review and to identify the main questions that need to be answered before the implementation of IFRS 3 can be assessed.

The RFI published today includes those questions and forms part of the formal public consultation. After the comment period ends, the IASB will consider the comments received along with information gathered through other consultation activities and findings from research on the topic. The final conclusions of the IASB will be presented in a report and a feedback statement which will also set out the steps the IASB believes should be taken as a result of the review.

The technical questions in the RFI address the following areas:

  • Definition of a business,
  • Fair value,
  • Separate recognition of intangible assets from goodwill and the accounting for negative goodwill,
  • Non‐amortisation of goodwill and indefinite life intangible assets,
  • Non‐controlling interests,
  • Step acquisitions and loss of control,
  • Disclosures, and
  • Any other matters the stakeholders wish to raise.

Comment deadline is 30 May 2014. The request for information and a corresponding press release are available on the IASB website.

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