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28/03/2019 - EFRAG's endorsement advice on Definition of a Business (Amendments to IFRS 3)

​EFRAG has completed its due process regarding Definition of a Business (Amendments to IFRS 3).

EFRAG has submitted its endorsement advice relating to Definition of a Business (Amendments to IFRS 3) ('the Amendments') for use in the European Union and European Economic Area to the European Commission.

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 assesses that the Amendments meet all the technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG's recommendation is explained in the letter to the European Commission and the accompanying appendices.

EFRAG has also updated its Endorsement Status Report.