International Financial Reporting Standards (IFRS)
The theme for IASB's work in the coming years is "Better Communication." Future projects will tackle the "face of the financial statements," focusing on improving the organization of the statements of financial performance, cash flows and financial position, as noted by Hans Hoogervorst, Chairman, International Accounting Standards Board, at the IFRS Foundation Conference in Zurich.
Definition of a Business and Accounting for Previously Held Interests (Proposed amendments to IFRS 3 and IFRS 11)
The IASB issued this exposure draft in June 2016. The Post-implementation Review of IFRS 3 carried out by the IASB identified that stakeholders find it difficult to apply the definition of a business in IFRS 3. Defining a business is important. This is because the financial reporting requirements for the acquisition of a business are different from the requirements for the purchase of a group of assets that does not constitute a business. The proposed amendments are intended to provide entities with clearer application guidance to help distinguish between a business and a group of assets when applying IFRS 3.
The IASB was also informed that there is diversity in practice in accounting for previously held interests in the assets and liabilities of a joint operation in two types of transactions: those in which an entity obtains control of a business that is a joint operation and those in which it obtains joint control of a business that is a joint operation. The proposed amendments to IFRS 3 and IFRS 11 are intended to clarify the accounting for each of these types of transactions.
Comment period ends on October 31, 2016.
Download >> Technical Bulletin: October 2016
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