IASB® releases Exposure Draft Business Combinations – Disclosures, Goodwill and Impairment
IASB® releases Exposure Draft Business Combinations – Disclosures, Goodwill and Impairment
The IASB® has released Exposure Draft Business Combinations – Disclosures, Goodwill and Impairment.
The Exposure Draft proposes amendments to IFRS 3 Business Combinations to require entities to report the objectives and related performance targets of their most important acquisitions, including whether these are met in subsequent years. Entities would also be required to provide information about the expected synergies for all material acquisitions.
This proposed change is expected to have a material impact on the disclosures required by entities that have goodwill reflected on their balance sheets.
The IASB has also proposed related amendments to IAS 36 Impairment of Assets to make targeted improvements to the impairment test. These proposed amendments could have a material impact on entities’ current impairment models.
The Exposure Draft is open for comments until 15 July 2024 and may be accessed here.
For more on the above, please contact your local BDO representative.
The Exposure Draft proposes amendments to IFRS 3 Business Combinations to require entities to report the objectives and related performance targets of their most important acquisitions, including whether these are met in subsequent years. Entities would also be required to provide information about the expected synergies for all material acquisitions.
This proposed change is expected to have a material impact on the disclosures required by entities that have goodwill reflected on their balance sheets.
The IASB has also proposed related amendments to IAS 36 Impairment of Assets to make targeted improvements to the impairment test. These proposed amendments could have a material impact on entities’ current impairment models.
The Exposure Draft is open for comments until 15 July 2024 and may be accessed here.
For more on the above, please contact your local BDO representative.