IASB publishes Exposure Draft – Business Combinations – Disclosures, Goodwill and Impairment
IASB publishes Exposure Draft – Business Combinations – Disclosures, Goodwill and Impairment
BDO has published IFR Bulletin 2024/03 IASB publishes Exposure Draft – Business Combinations – Disclosures, Goodwill and Impairment.
In March 2024, the IASB issued an Exposure Draft Business Combinations – Disclosures, Goodwill and Impairment proposing amendments to IFRS 3 Business Combinations and IAS 36 Impairment of Assets.
The Exposure Draft proposes to introduce additional disclosure requirements in IFRS 3 that will require entities to provide information about the strategic rationale, expected synergies and the actual performance of acquisitions in the year of acquisition and in reporting periods after the acquisition. The Exposure Draft also proposes certain amendments to IAS 36 to make targeted improvements to the impairment test, with an objective to reduce shielding of goodwill from impairments being recognised and to simplify the impairment test.
BDO’s IFR Bulletin summarises the effects of the proposed amendments. It also includes an example to illustrate the effect of the proposed amendments on the recognition of impairment on goodwill.