IFRS
IFRS 3 - Definition of a Business
In October 2018, the IASB issued ‘Definition of a Business’ making amendments to IFRS 3 ‘Business Combinations’. The amendments are a response to feedback received from the post-implementation review of IFRS 3 (‘the Standard’). They clarify the definition of a business, with the aim of helping entities to determine whether a transaction should be accounted for as an asset acquisition or a business combination. In summary, the amendments: clarify the minimum attributes that the acquired set of activities and assets must have to be considered a business remove the assessment of whether market participants are able to replace missing inputs or processes and continue to produce outputs narrow the definition of a business and the definition of outputs add an optional concentration test that allows a simplified assessment of whether an acquired set of activities and assets is not a business.