ED 329 Business Combinations—Disclosures, Goodwill and Impairment

Thursday, March 28, 2024

The International Accounting Standards Board (IASB) has published a package of proposals aimed at enhancing the information companies provide to investors about acquisitions. The Exposure Draft contains proposed amendments to IFRS 3 Business Combinations and IAS 36 Impairment of Assets. AASB proposes the same amendments to Australian Accounting Standards in ED 329 Business Combinations—Disclosures, Goodwill and Impairment. 

The proposed amendments to AASB 3 Business Combinations would require companies to report the objectives and related performance targets of their most important acquisitions, including whether these are met in subsequent years. Companies would also be required to provide information about the expected synergies for all material acquisitions. However, companies would not be required to disclose information that could compromise their acquisition objectives. ED 329 also proposes amendments to AASB 136 Impairment of Assets to make targeted improvements to the impairment test. 

Comments to the AASB are requested by 3 May 2024. The IASB’s comment period closes on 15 July 2024. 

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