15 March 2024To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB EXPOSURE DRAFTBusiness Combinations—Disclosures, Goodwill and ImpairmentProposed amendments to IFRS 3 and IAS 36Comments to be received by 3 June 2024The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of CertifiedPublic Accountants (Institute) is seeking comments on the International Accounting StandardsBoard (IASB) Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment.The Exposure draft, together with a snapshot and a short video providing a high-level summaryof the proposals, is available on the Institute's website:
https://www.hkicpa.org.hk/en/Standards-setting/Standards/Open-for-comment-documents/fredThe proposals in the Exposure Draft respond to stakeholder feedback that reporting onacquisitions poses difficulties for both investors and companies:
•Investors lack sufficient and timely information about acquisitions and post-acquisitionperformance.•Companies seek to provide useful information to investors but see risks and costs inproviding some information, particularly commercially sensitive information that could beused by competitors.Stakeholders have also expressed concern about the effectiveness and complexity of theimpairment test for operations which have been allocated goodwill.The IASB is proposing amendments to IFRS 3 Business Combinations. The proposedamendments would require companies to report the objectives and related performance targetsof their most important acquisitions and to provide information about the expected synergies forall material acquisitions. However, companies would not be required to disclose informationthat could compromise their acquisition objectives.The IASB also proposes related amendments to IAS 36 Impairment of Assets to make targetedimprovements to the impairment test.The FRSC invites your comments on the Exposure Draft by 3 June 2024 to allow yourcomments to be considered in developing its response to the IASB. Comments should besupported by specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6603E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.
Invitation to Comment on IASB Exposure Draft on Business Combinations—Disclosures, Goodwill and Impairment - Proposed amendments to IFRS 3 and IAS 36
下载原件15 March 2024To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON THE IASB EXPOSURE DRAFTBusiness Combinations—Disclosures, Goodwill and ImpairmentProposed amendments to IFRS 3 and IAS 36Comments to be received by 3 June 2024The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute of CertifiedPublic Accountants (Institute) is seeking comments on the International Accounting StandardsBoard (IASB) Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment.The Exposure draft, together with a snapshot and a short video providing a high-level summaryof the proposals, is available on the Institute's website:
https://www.hkicpa.org.hk/en/Standards-setting/Standards/Open-for-comment-documents/fredThe proposals in the Exposure Draft respond to stakeholder feedback that reporting onacquisitions poses difficulties for both investors and companies:
•Investors lack sufficient and timely information about acquisitions and post-acquisitionperformance.•Companies seek to provide useful information to investors but see risks and costs inproviding some information, particularly commercially sensitive information that could beused by competitors.Stakeholders have also expressed concern about the effectiveness and complexity of theimpairment test for operations which have been allocated goodwill.The IASB is proposing amendments to IFRS 3 Business Combinations. The proposedamendments would require companies to report the objectives and related performance targetsof their most important acquisitions and to provide information about the expected synergies forall material acquisitions. However, companies would not be required to disclose informationthat could compromise their acquisition objectives.The IASB also proposes related amendments to IAS 36 Impairment of Assets to make targetedimprovements to the impairment test.The FRSC invites your comments on the Exposure Draft by 3 June 2024 to allow yourcomments to be considered in developing its response to the IASB. Comments should besupported by specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6603E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unless otherwiserequested by the respondent.