Deloitte comment letter on proposed amendments to IFRS 3 and IFRS 11
We have responded to the IASB's Exposure Draft, Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11), issued by the IASB in June 2016.
As stated in the comment letter, we welcome the Board’s initiative to addressing the issue and support the introduction of a ‘concentration test; however, we believe for it to be operational, applying the idea of ‘similar identifiable assets’ is needed. In addition, we recommend that the Board should (1) seek to minimise or eliminate the accounting differences between business combinations and asset purchases and (2) consider taking a broader approach to the amendments to IFRS 3 and IFRS 11 on obtaining control, or joint control, of a joint operation that constitutes a business.
Download the full comment letter below.