WG 50 Business Combinations and Goodwill

Chairman: Dato’ Soo Chan Fai; Project Manager: Mr. James Chan Kuan Chee

WG 50 was responsible for developing FRS 3 Business Combinations. This Standard prescribes the financial reporting requirements by an entity when it undertakes a business combination and it specifies that all business combinations should be accounted for by applying the purchase method. Therefore, the acquirer recognises the acquiree's identifiable assets, liabilities and contingent liabilities at their fair values at the acquisition date, and also recognises goodwill, which is subsequently tested for impairment rather than amortised. WG 50 is currently reviewing IFRS 3 (revised) issued by the IASB in 2008.