Business Combinations - Disclosures, Goodwill and Impairment


In September 2023 the IASB decided to publish an Exposure Draft containing proposed amendments to:

  • IFRS 3 Business Combinations—in particular, to improve the information companies disclose about the performance of business combinations; and
  • IAS 36 Impairment of Assets—in particular, amendments to the impairment test of cash-generating units containing goodwill.

The IASB is expected to publish the exposure draft in Q1 2024 with a comment period of 120 days.


In this project, the IASB is exploring whether companies can, at a reasonable cost, provide investors with more useful information about the business combinations those companies make.

The IASB’s proposals build on its preliminary views expressed in the Discussion Paper (DP) Business Combinations – Disclosures, Goodwill and Impairment published in March 2020 following the IASB’s post-implementation review of IFRS 3 Business Combinations. Details of the UKEB’s response to the DP can be found on our project webpage here. Having redeliberated its preliminary views, the IASB decided in December 2022 to add this project to its standard-setting programme.

Key IASB Proposals

The ED is expected to include:

1. Disclosures about business combinations (in IFRS 3 Business Combinations)

  • Disclose qualitative and quantitative performance information about strategic business combinations;
  • Exempt an entity from disclosing some information in specific circumstances;
  • Identify information using an entity’s key management personnel (KMP);
  • Other improvements to existing disclosures, including disclosing quantitative information about expected synergies.

2. Accounting for goodwill (in IAS 36 Impairment of Assets)

  • Retain the impairment-only model (no amortisation);
  • Simplify calculation of value in use;
  • Retain requirement to perform impairment test annually;
  • Clarifications on how an entity allocates goodwill to cash-generating units (CGUs).

The UKEB is monitoring the development of the IASB project. Updates for the UKEB have been included in IASB General Update papers, with a summary of the IASB’s tentative decisions presented at the October 2023 board meeting – see Appendix B of the October 2023 IASB General Update paper.

Planned Outreach

Outreach activity on this project will include roundtables and one-to-one interviews with UK stakeholders (including users, preparers and accounting firms) and consultation on our draft comment letter.

More detailed information on planned outreach activities will be published in due course. If you would like to contribute to outreach work on this project, please email

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