IFRS Bulletin 2018-07
01. Februar 2019
AMENDMENTS TO IFRS 3 – DEFINITION OF A BUSINESS
In October 2018, the IASB issued amendments to IFRS 3 Business Combination to improve the definition of a business. The amendments arose from a post-implementation review of IFRS, which is an assessment carried out to determine whether an IFRS Standard works as intended.
The amendments and supplementary guidance are intended to help companies determine whether an acquisition is of a business or a group of assets. Distinguishing between a business and a group of assets is important because an acquirer recognises goodwill only when acquiring a business.
A summary of the amendments are as follows:
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