Business Combinations—Disclosures, Goodwill and Impairment

The IASB met on 21 April 2026 to continue deliberating feedback on proposals in the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment. 

Project update (Agenda Paper 18A)

The IASB discussed a plan for completing redeliberations.

The IASB was not asked to make any decisions.

Performance information subset (Agenda Papers 18B–18D)

The IASB discussed its proposal to require an entity to disclose performance information for only a subset of business combinations.

The IASB tentatively decided to retain the proposal to require an entity to disclose performance information for only a subset of business combinations. The IASB also tentatively decided to proceed with a threshold approach to identify the subset.

Eleven of 13 IASB members agreed with this decision.

In relation to the design of the threshold approach, the IASB tentatively decided:

1. to retain the proposed revenue and asset thresholds;
2. to remove the proposed operating profit threshold;
3. to retain the proposal to set the quantitative thresholds at 10%; and
4. to remove the proposed qualitative thresholds.

Eleven of 13 IASB members agreed with this decision.

The IASB tentatively decided to make no changes based on other feedback on the proposed threshold approach.

Twelve of 13 IASB members agreed with this decision.

Exemption (Agenda Paper 18E)

The IASB discussed the proposed exemption from some of the disclosure requirements in the Exposure Draft. The IASB tentatively decided to retain the exemption from disclosing some information in specific circumstances.

The IASB discussed the circumstances in which an entity can apply the exemption. The IASB tentatively decided:

1. to refine the wording of the exemption to exempt entities from disclosing information that would result in a breach of statutory legal or regulatory requirements; and
2. not to refine the wording of the exemption to cover other circumstances suggested by respondents, including those in which disclosing performance and expected synergy information would lead to negative social or operational consequences beyond what would already be covered by the proposed exemption.

The IASB discussed the application of the exemption. The IASB tentatively decided:

1. to retain the proposal requiring an entity to reassess at the end of each reporting period whether a key objective or target to which the exemption was previously applied still qualifies for the exemption;
2. to remove the proposal requiring an entity to disclose the reason for applying the exemption;
3. not to define the term ‘seriously prejudicial’;
4. not to include a statement specifying that the exemption is to be applied only in ‘extremely rare circumstances’;
5. not to include additional examples of circumstances in which an entity:
   1. can apply the exemption; or
   2. might be able to disclose information in a different way instead of applying the exemption; and
6. to provide no further clarifications.

All 13 IASB members agreed with these decisions.

Restructuring and asset enhancement cash flows (Agenda Paper 18F)

The IASB discussed its proposal to remove from IAS 36 Impairment of Assets the requirement for an entity to exclude cash flows from uncommitted future restructurings and asset enhancements when calculating value in use. The IASB tentatively decided:

1. to retain this proposal; and
2. to do no further work in response to respondents’ suggestions in relation to the proposal that the IASB:
   1. add an illustrative example;
   2. include additional safeguards or constraints;
   3. add disclosure requirements;
   4. clarify the relationship with IAS 37 Provisions, Contingent Liabilities and Contingent Assets; and
   5. clarify the remaining differences between value in use and fair value less costs of disposal or reconsider whether to maintain both methods.

Nine of 13 IASB members agreed with this decision.