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Post-implementation review — IFRS 3

Background

The IASB carries out a post-implementation review of each new IFRS or major amendment. This is normally carried out two years after the new requirements have become mandatory and been implemented.

The objectives of a post-implementation review, according to the IASB's Due Process Handbook, are:

  • to review the important issues that had been identified as contentious during the development of the pronouncement
  • to consider any unexpected costs or implementation problems that have been encountered.

This page covers the IASB's post-implementation review of IFRS 3 Business Combinations.

 

Current status of the project

The post-implementation review process for IFRS 3 was completed in 2015. The IASB published Report and Feedback Statement Post-implementation Review of IFRS 3 Business Combinations on 17 June 2015. The report showed general support for the accounting requirements in the Standard but some areas were identified where further research will be undertaken, including accounting for goodwill. On the basis of the PIR report, the IASB added to its agenda two research projects that will focus on:

  • Effectiveness and complexity of testing goodwill for impairment;
  • Subsequent accounting for goodwill;
  • Challenges related to applying the definition of a business;
  • Identification and fair value measurement of intangible assets such as customer relationships and brand names.

 

Project milestones

Date Development Comments
October 2011 IFRS 3 post-implementation review added to the IASB agenda Originally expected to commence during 2012
25 July 2013 IFRS 3 post-implementation review process formally commenced
30 January 2014 Request for Information Post-implementation Review: IFRS 3 Business Combinations published Comment deadline 30 May 2014
17 June 2015 Report and Feedback Statement Post-implementation Review of IFRS 3 Business Combinations published
On the basis of the PIR report, the IASB added to its agenda two research projects: Definition of a business and Goodwill

 

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.