IASB Proposes IFRS 3 Amendments Related to the Conceptual Framework

The IASB has published an exposure draft (ED), Reference to the Conceptual Framework.

The ED would amend IFRS 3, Business Combinations, to do the following:

• Update Conceptual Framework references to the 2018 version instead of the 1989 version.
• Require that — for transactions and other events within the scope of IAS 37 or IFRIC 21 — an acquirer should apply IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the liabilities it has assumed in a business combination.
• Explicitly state that an acquirer should not recognize contingent assets acquired in a business combination.

Comments on the ED are due by September 27, 2019. For more information, see the press release and ED on the IASB’s Web site.