Exposure Draft IASB/ED/2024/1 Business Combinations - Disclosures, Goodwill and Impairment (Proposed amendments to IFRS 3 and IAS 36)


The International Accounting Standards Board (IASB) has published the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment, which proposes a package of amendments to IFRS 3 Business Combinations and IAS 36 Impairment of Assets

The Exposure Draft respond to stakeholder feedback that reporting on acquisitions poses difficulties for both investors and companies:

  • Investors lack sufficient and timely information about acquisitions and post-acquisition performance.

  • Companies seek to provide useful information to investors but see risks and costs in providing some information, particularly commercially sensitive information that could be used by competitors.

Additionally, stakeholders have also expressed concern about the effectiveness and complexity of the impairment test for operations which have been allocated goodwill.

In particular, the Exposure Draft proposes amendments mainly relate to:

  • the disclosure requirements in IFRS 3—to improve the information companies disclose about the performance of business combinations; and

  • the impairment test in IAS 36—to amend the impairment test of cash-generating units containing goodwill.

The IASB is requesting feedback about whether the proposed changes:

  • to IFRS 3 appropriately balance the benefits of requiring a company to make the proposed disclosures and the costs of doing so; and

  • to the impairment test in IAS 36 would improve the effectiveness of the impairment test and reduce the cost and complexity of applying the test.

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Invitation to comment

The Exposure Draft is open for comment until 14 June 2024.

You may provide your comments via email to us at technical@masb.org.my

Click here to submit your comments.