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14/01/2019 - EFRAG requests comments on its Draft Endorsement Advice on Definition of a Business (Amendments to IFRS 3)

​EFRAG is consulting on both its assessment of the Amendments 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 4 March 2019.

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 Amendments').

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.

EFRAG's draft endorsement advice letter is available here.
You are asked to provide your comments on the draft endorsement advice letter either:

  • through the web form survey available here; (EFRAG's preferred way) or
  • by downloading the Invitation to Comment, filling in the comments, and submitting the response by clicking on the 'Comment publication' link below.

Comments are requested by 4 March 2019.

For your information, EFRAG has also updated its Endorsement Status Report, which is available on EFRAG's website.