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IFRS 3 — Definition of a business


The post-implementation review of IFRS 3 Business Combinations was completed in 2015 by publishing a report and feedback statement Post-implementation Review of IFRS 3 Business Combinations. The report showed general support for the accounting requirements in the standard but some areas were identified where further action needed to be undertaken, including the definition of a business as it had become obvious that entities have difficulties when determining whether they have acquired a business or a group of assets. As the accounting requirements for goodwill, acquisition costs and deferred tax differ on the acquisition of a business and on the acquisition of a group of assets, the IASB decided in October 2015 to issue narrow scope amendments aimed at resolving the difficulties that arise when an entity is determining whether it has acquired a business or a group of assets.


Current status of the project

This project has been completed. The IASB issued Definition of a Business (Amendments to IFRS 3) on 22 October 2018.


Project milestones

Date Development Comments
February 2015 Formally added to the IASB agenda
28 June 2016 ED/2016/1 Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11) published comments requested by 31 October 2016
22 October 2018 Definition of a Business (Amendments to IFRS 3) issued 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 1 January 2020 and to asset acquisitions that occur on or after the beginning of that period


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.