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In September 2023 the IASB decided to publish an Exposure Draft containing proposed amendments to:

  • IFRS 3 Business Combinations—in particular, to improve the information companies disclose about the performance of business combinations; and
  • IAS 36 Impairment of Assets—in particular, amendments to the impairment test of cash-generating units containing goodwill.

The IASB’s proposals build on its preliminary views expressed in the Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment.

The IASB is now working towards publishing an exposure draft.

IASB® Update September 2023

The IASB met on 19 September 2023 to discuss its project on Business Combinations—Disclosures, Goodwill and Impairment. The IASB discussed:

  • transition requirements for the proposed changes to IFRS 3 Business Combinations and IAS 36 Impairment of Assets; and
  • due process steps—including permission to begin the balloting process—for the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment (Exposure Draft).

Transition and first-time adopters (Agenda Paper 18B)

The IASB tentatively decided:

  1. to require an entity to apply the proposed amendments to the disclosure requirements in IFRS 3 to business combinations for which the acquisition date is on or after the effective date of the amendments, with earlier application permitted;
  2. not to provide first-time adopters with a specific exemption from applying the proposed amendments to IAS 36; and
  3. to require eligible subsidiaries to apply the proposed amendments to the prospective IFRS Accounting Standard Subsidiaries without Public Accountability: Disclosures, without restating comparative information, from the effective date of those proposed amendments, with earlier application permitted.

All 14 IASB members agreed with these decisions.

The IASB also tentatively decided:

  1. to require an entity to apply the proposed amendments to IAS 36 to impairment tests on or after the effective date of the proposed amendments, with earlier application permitted; and
  2. not to provide first-time adopters with a specific exemption from applying the proposed amendments to IFRS 3.

Thirteen of 14 IASB members agreed with these decisions.

Due process and permission to begin the balloting process (Agenda Paper 18C)

The IASB decided to set a comment period of 120 days for the Exposure Draft.

All 14 IASB members agreed with this decision.

No IASB member indicated an intention to dissent from the proposals in the Exposure Draft.

All 14 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the process for balloting the Exposure Draft.

Next milestone

Exposure Draft