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14 January 2019

EFRAG requests comments on its draft endorsement advice on definition of a business

EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Definition of a Business (Amendments to IFRS 3).

The objective of the Amendments is to assist entities to determine whether a transaction should be accounted for as a business combination or as an asset acquisition.

The Amendments become effective for annual periods beginning on or after 1 January 2020, with earlier application permitted.

EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement. EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.

Comments are requested by 4 March 2019.

Full press release

Full draft endorsement advice letter

© EFRAG - European Financial Reporting Advisory Group

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