Skip To Content | Contact Us | About AASB | Links

AASB on Twitter AASB on LinkedIn

Breadcrumbs

Stuff

News

6 Jun. 2019

Exposure Draft: Reference to the Conceptual Framework

ED 290 Reference to the Conceptual Framework proposes narrow-scope amendments to AASB 3 Business Combinations to update the reference to the Conceptual Framework for Financial Reporting without changing the accounting requirements for business combinations. Updating the reference without making any other changes to AASB 3 could change the accounting requirements for business combinations because the liability definition in the new Conceptual Framework is broader than that in previous versions. Entities would need to record provisions and contingent liabilities when they acquire a business they would not record in other circumstances. To avoid this, the ED also proposes that for provisions and contingent liabilities, entities refer to AASB 137 Provisions, Contingent Liabilities and Contingent Assets instead of the Conceptual Framework to determine what constitutes a liability. Please submit your comments to the AASB by 20 August 2019 via the AASB website, LinkedIn or email.