The IASB has issued Definition of a Business and Accounting for Previously Held Interests, an exposure draft of proposed amendments to IFRS 3 and IFRS 11, with comments to be received by October 31, 2016 IFRS 3 defines a business as “an integrated set of activities and assets that is capable of being conducted and…
A European example of problems with identifying bargain purchases 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 17th edition: “In 2012, the issuer acquired businesses A, B and C. The three…
Here’s an issue discussed a while ago by Canada’s IFRS Discussion Group: “Entity A acquires 80 per cent of the issued shares of Entity B. Consideration is in the form of cash. Entity B has just one asset, the rights to a mineral property in the exploration and evaluation stage. As a result of the…
Here’s an issue discussed a while ago in Viewpoints: Applying IFRS in the Mining Industry – Accounting for Decommissioning Liabilities Assumed in a Business Combination, a document issued by the Mining Industry Task Force on IFRSs of CPA Canada and the Prospectors & Developers Association of Canada: “Mining entities often acquire projects directly or through the acquisition…
Some European observations on the quality of compliance with aspects of IFRS 3 As we discussed here, the IASB recently completed its post-implementation review of IFRS 3 Business Combinations. If that’s not enough insight into the state of things with this standard, you can also look to the ESMA Report on Enforcement and Regulatory Activities…
The IASB recently completed its Post-implementation Review of IFRS 3 Business Combinations. This is how the news release summed up the exercise: “It shows general support for the accounting requirements in the Standard but identifies some areas where further research will be undertaken, including accounting for goodwill. The IASB conducts Post-implementation Reviews (PIR) of its…
Is it possible to imagine a principles-based accounting system where all the principles set out for different items perfectly align with each other…? …maybe a system where everything is measured at fair value, and all the changes go through a single measure of profit or loss? Of course, such a system would bring more measurement…
by John Hughes As part of its activities, the European Securities and Markets Authority (ESMA) organizes a forum of enforcers from 30 different European jurisdictions, all of whom carry out monitoring and review programs similar to those carried out here by the Canadian Securities Administrators. ESMA recently published its 15th summary of extracts from its…
A European example of a disagreement about what constitutes a business In numerous recent posts, I’ve looked at issues arising from extracts of enforcement decisions recently issued by the European Securities and Markets Authority (ESMA) (for more background see here). I came late to this party though, because ESMA had actually issued similar summaries on…
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