28. June 2016
Today, the IASB published ED/2016/1 Definition of a Business and Accounting for Previously Held Interests (Proposed Amendments to IFRS 3 and IFRS 11).
The proposed amendments are intended to clarify the definition of a ‘business’ since the Post-implementation Review (PIR) of IFRS 3 identified that the application of this definition proved to be difficult. The proposed amendments are meant to help distinguishing between a business and a group of assets when applying IFRS 3 as different financial reporting requirements exist for those acquisitions.
Further, the proposed amendments clarify the accounting for previously held interests when an entity obtains control or joint control of a business that is a joint operation.
This draft can be accessed the project website or on the ‘Comment on a proposal’ page on www.ifrs.org. The IASB requests comments on the proposals by 31 October 2016. (IASB Press Release)