Financial Reporting Dossier

A. KEY GLOBAL UPDATES

1. IASB: PROPOSAL TO IMPROVE REPORTING OF ACQUISITIONS

On 14^th March 2024, the international accounting Standards Board published Exposure Draft Business Combinations — Disclosures, Goodwill and Impairment aimed at enhancing the information companies provide to investors about acquisitions.

The exposure draft published responds to stakeholder feedback that reporting on acquisitions poses difficulties for both investors and companies:

•  Investors lack sufficient and timely information about acquisitions and post-acquisition performance.
•  Companies seek to provide useful information to investors but see risks and costs in providing some information, particularly commercially sensitive information that could be used by competitors.

The stakeholders have also expressed concern about the effectiveness and complexity of the impairment test for operations which have been allocated goodwill.

The Exposure Draft proposes amendments to:

•  IFRS 3 Business Combinations — in particular, to improve the information companies disclose about the performance of busines
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