IASB March 2009

The Board redeliberated one issue from the exposure draft of proposed Improvements to IFRSs published in August 2008 on the scope exemption within IAS 39 Financial Instruments: Recognition and Measurement for business combination contracts.

The Board decided tentatively to amend paragraph 2(g) of IAS 39 to limit the scope exclusion to any forward contract between an acquirer and a selling shareholder to buy or sell an acquiree that will result in a business combination at a future acquisition date. The term of the forward contract should not exceed a reasonable period normally necessary to obtain any required approvals and to close the transaction.

The Board will include this amendment in the Improvements to IFRSs, expected to be issued in April 2009.