On 28 June 2016 the International Accounting Standards Board (the Board) published proposals to clarify the definition of a business in IFRS 3 Business Combinations. In this webcast Board Member Mary Tokar and Technical Director Michael Stewart provide an overview of the proposals.
The webcast highlights two proposed new assessments that an entity would be required to undertake to help it determine whether it is acquiring a business or a set of assets:
- evaluation of concentration of fair value; and
- evaluation of whether an acquired process is substantive.
