As we addressed previously, the IASB has published “a Discussion Paper on possible improvements to the information companies report about acquisitions of businesses to help investors assess how successful those acquisitions have been.” We noted before that the IASB “has concluded that there is no alternative that can target goodwill better and at reasonable cost.” Let’s…
The IASB has published “a Discussion Paper on possible improvements to the information companies report about acquisitions of businesses to help investors assess how successful those acquisitions have been.” This was issued on March 19, 2020, at the height of COVID-19 anxiety, and as such you might see it either as a heartening assertion of perseverance,…
At a recent meeting, the IASB’s Capital Markets Advisory Committee discussed a few issues relating to goodwill and impairment. In the accompanying agenda paper, staff indicated that they’re considering recommending some additions to the existing disclosure requirements in IFRS 3, focused on assisting users to better understand “the strategic rationale for and the key objectives…
As we discussed last time, the IASB has issued Definition of a Business, amendments to IFRS 3, effective for transactions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 We ended the last post by addressing the “optional concentration test”…
The IASB has issued Definition of a Business, amendments to IFRS 3, effective for transactions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 Prior to the amendments, IFRS 3 defines a business as “an integrated set of activities and…
We’ve already considered a couple of the issues raised by the EFRAG discussion paper Goodwill impairment test: can it be improved?, which was published last June. Here’s another topic: In accordance with IAS 36, estimating value in use involves estimating the future cash flows to be derived from continuing use of the CGU and from…
I tuned in a bit late to the EFRAG discussion paper Goodwill impairment test: can it be improved?, which was published last June As always with such a title, there’s very little likelihood that the answer would turn out to be, basically, no it can’t. The paper – which is timely as the IASB is…
A European example of complexities in applying IFRS 3 Here’s another of the issues arising from extracts of enforcement decisions issued in the past by the European Securities and Markets Authority (ESMA) (for more background see here); this is from their 19th edition: The issuer owned Business E whose net assets amounted to CU 1.3M…
The strange, self-contained world of pro forma financial statements… We recently discussed the CSA’s current consultation paper on reducing the “regulatory burden” on reporting issuers. Among much else, the paper floats the possibility of removing the requirement to prepare pro forma statements as part of a business acquisition report filed under Canadian securities regulations. Well, in…
The Canadian Securities Administrators have issued Staff Notice 51-346 Continuous Disclosure Review Program Activities for the fiscal year ended March 31, 2016. The report highlights a motley selection of apparently recurring deficiencies in IFRS financial statements: Market Risk Sensitivity Analysis “Some issuers present sensitivity analysis that is not reflective of the reasonably possible changes in…
John Hughes IFRS Blog 