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
|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|