Keywords: Mazars, Thailand, IFRS, IASB
9 August 2016
Following the Post-implementation Review of IFRS 3, challenges have been identified in applying the definition of a business. Given the significant accounting differences between a business combination and the purchase of an asset or group of assets, the IASB has decided to revisit and clarify the definition of a business. In practice, as well as changes to the definition of the elements that constitute a business, the amendments propose a new two-step approach to determining whether a business is present.
In the same exposure draft, the IASB also proposes putting an end to divergent practices in accounting for previously held interests in a joint operation in subsequent transactions in which an entity either obtains exclusive control or joint control of a joint operation.
This draft is available on the IFRS website.