The International Accounting Standards Board (IASB) is redeliberating feedback on the Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment.
In December 2022, after considering the feedback, the IASB decided to add this project to its standard-setting programme. The IASB is now working towards developing proposals to include in an Exposure Draft.
The IASB met on 24 January 2023 to discuss its project on Business Combinations—Disclosures, Goodwill and Impairment. In particular, the IASB discussed:
Exemption from disclosure requirements (Agenda Paper 18A)
The IASB tentatively decided in September 2022 to propose an exemption from disclosing some information about business combinations in specific circumstances.
At the January 2023 meeting, the IASB tentatively decided to propose a principle for an entity to apply when using this proposed exemption. An entity applying the principle would be allowed to use the exemption from disclosing a particular item of information if disclosing that information can be expected to prejudice seriously any of the entity’s objectives for the business combination.
All 12 IASB members agreed with this decision.
To help entities apply this exemption, the IASB tentatively decided to propose application guidance. This application guidance would require an entity:
Eleven of 12 IASB members agreed with this decision.
The IASB tentatively decided:
Nine of 12 IASB members agreed with this decision.
Expected synergies (Agenda Paper 18B)
The IASB tentatively decided in September 2022 to propose adding to IFRS 3 Business Combinations a requirement for an entity to disclose quantitative information about synergies expected from a business combination in the reporting period in which the business combination occurs.
At the January 2023 meeting, the IASB tentatively decided to require an entity:
All 12 IASB members agreed with this decision.
Exposure Draft
International Accounting Standards Board January 2023