24/06/2020 - EFRAG requests comments on its Draft Endorsement Advice on Reference to the Conceptual Framework (Amendments to IFRS 3)
EFRAG is consulting on its assessment of Reference to the Conceptual Framework (Amendments to IFRS 3) against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good. Comments are requested by 7 September 2020.
EFRAG has issued its Draft Endorsement Advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Reference to the Conceptual Framework (Amendments to IFRS 3) ('the Amendments').
The objectives of the Amendments are to:
- Update IFRS 3 Business Combinations so it refers to the 2018 Conceptual Framework instead of the 1989 Framework in a manner that avoids unintended consequences, such as Day 2 gains or losses.
- Clarify aspects of IFRS 3.
The Amendments shall be applied to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after 1 January 2022. Earlier application is permitted if at the same time or earlier an entity also applies all the amendments made by Amendments to References to the Conceptual Framework in IFRS Standards, issued in March 2018.
EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.
Comments are requested by 7 September 2020. You can comment on EFRAG’s Draft Endorsement Advice by clicking on the ‘Comment publication’ link below.
EFRAG has also updated its Endorsement Status Report, which can be downloaded here on EFRAG's web page.