Due Process Compliance Statement - Business Combinations - Disclosures, Goodwill and Impairment

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Publication date
20 September 2024
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The International Accounting Standards Board (IASB) published the Exposure Draft (ED) Business Combinations – Disclosures, Goodwill and Impairment Proposed amendments to IFRS 3 and IAS 36 on 14 March 2024. The IASB comment period ended on 15 July 2024.

Influencing process

Project preparation

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Added to UKEB technical work plan [Due Process Handbook (Handbook) 4.30] Mandatory Project included in the UKEB published technical work plan Complete: the Exposure Draft (ED) was anticipated and included in the UKEB technical work plan published in January 2023.
Project Initiation Plan (PIP) [Handbook 5.4 to 5.8, A1 to A2 and A12 to A14] Mandatory PIP draft with project outline (background, scope, project objective) and approach for influencing (key milestones and timing) Complete: The UKEB Secretariat included mandatory milestones for the project and considered, as appropriate, other milestones and activities. The PIP was approved at the 28 March 2024 Board meeting.
Mandatory Outreach plan for stakeholders and communication approach outlined Complete: The PIP included the outreach plan and approach.
Mandatory Resources allocated Complete: One project director, with technical support and oversight from a senior project director, was allocated to the project.
Mandatory Assessment of whether to set up an ad-hoc advisory group Complete: Taking a proportionate approach, an ad-hoc advisory group was not considered necessary due to specialist technical knowledge not deemed necessary for the project.
Mandatory Assessment of whether PIP required updating Complete: No updates to the PIP were required.
Project Initiation Plan (PIP) [Handbook 5.4 to 5.8, A1 to A2 and A12 to A14] (continued) Mandatory UKEB Board public meeting held to approve PIP Complete: The PIP was approved at the 28 March 2024 Board meeting.
Education sessions [Handbook 4.10] Optional Board provided with education session Complete: The Board was provided with an education session on the IASB's tentative decisions expected in the ED at the 23 February 2024 Board meeting – see Private meeting agenda.

Desk-based research

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Desk-based research [Handbook 5.9 and A3] Optional Review of relevant documentation Complete: the UKEB Secretariat has reviewed:
  • The IASB's work on the project, including the staff papers and the ED;
  • The Illustrative Examples accompanying IFRS 3 and IAS 36 included in the ED and the Basis for Conclusions to the ED;
  • Other educational material published by the IASB on their project webpage as well as the IASB webcast series on the proposals in the ED.
  • Other standard-setters' views.

Outreach

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Outreach activities [Handbook 5.10 to 5.12 and A4 to A8] Mandatory Evidence of consultation Complete: Outreach activities focused on consultation with
  1. UKEB Advisory Groups;
  2. one-to-one interviews with preparers, carried out jointly with the IASB;
  3. a user/preparer roundtable event, hosted jointly with the IASB; and
  4. obtaining responses to the Draft Comment Letter (DCL).
The UKEB received four comment letters. The comment letters received were published on the UKEB project page.

Draft Comment Letter (DCL)

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
DCL published for comment (mandatory unless impracticable) [Handbook paragraphs 5.13 to 5.17 and A4(d)] Mandatory Comment period set for responses to DCL Complete: The DCL was published for consultation on 31 May 2024, with a minimum comment period of 30 days - comment deadline 1 July 2024.
Mandatory Review and approval at a UKEB public meeting Complete: The draft DCL was reviewed and approved, subject to suggested changes, at the 24 May 2024 Board meeting.
Mandatory DCL published on website for public consultation Complete: The DCL was published for consultation on 31 May 2024, with a comment deadline of 1 July 2024.

Project finalisation and project closure

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Final Comment Letter (FCL) [Handbook paragraph 5.18 and A4(d)] Mandatory Public responses to DCL considered and published on website Complete: The UKEB received four comment letters which were published on the UKEB project webpage. All responses were assessed, reflected as appropriate in the FCL, and summarised in the Feedback Statement.
Mandatory FCL approved by the UKEB in public meeting Complete: A FCL was presented for approval at the 18 July 2024 Board meeting. The Board approved the FCL subject to suggested amendments.
Mandatory FCL submitted to the IASB and posted on UKEB website Complete: The FCL was submitted to the IASB on 19 July 2024 and posted on the UKEB project webpage on 22 July 2024.
Feedback Statement [Handbook 5.19 to 5.22 and A9 to A11] Mandatory Feedback Statement approved for publication by the UKEB in a public meeting Complete: A Feedback Statement was presented for approval at the 18 July 2024 Board meeting. The Board approved the Feedback Statement, subject to editorial changes.
Mandatory Feedback Statement published on the UKEB website Complete: The Feedback Statement was published on the UKEB project webpage on 25 July 2024.
Due Process Compliance Statement (DPCS) [Handbook 5.23 to 5.26 and A12 to A14] Mandatory DPCS approved by the UKEB in public meeting Complete: A draft DPCS was presented for approval at the 18 July 2024 Board meeting. The final DPCS was presented for noting at the 19 September 2024 Board meeting.
Mandatory DPCS published on the UKEB website Complete: The final DPCS was published on the UKEB project webpage after the 19 September 2024 Board meeting.

Ongoing communications

Step Mandatory / optional2 Metrics or evidence UKEB Secretariat comments
Public Board meetings [Handbook 4.10] Mandatory UKEB public meetings held to discuss technical project Complete: The board received various updates on the IASB redeliberation on the project:The Board received an update, for discussion, on the IASB's tentative decisions on the project at the 19 October 2023 Board meeting. The Board discussed an initial technical paper at the 26 April 2024 Board meeting. The Board approved:
Secretariat papers [Handbook 4.20] Mandatory Board meeting papers posted and publicly available usually no later than 5 working days before a Board meeting. Complete: The UKEB's meeting papers were published on the UKEB website five working days before the public meetings. Meeting minutes and recordings were made publicly available via the UKEB website - Events webpage.
Project webpage [Handbook 4.25(b)] Mandatory Project webpage contains a project description with up-to-date information on the project. Complete: The UKEB project webpage has been updated regularly on a timely basis.
Subscriber Alerts [Handbook 4.24] Optional Evidence that subscriber alerts have occurred Complete: Subscribers were alerted via email five days before each Board meeting, with links to the agenda, papers and the option to dial in to observe the discussion.
News Alerts [Handbook 4.24] Optional News Alert to announce publication of key documents Complete: A News Alert was published on 31 May 2024 calling for comments on the DCL. A News Alert announcing publication of the FCL and Feedback Statement was published on 26 July 2024.

Conclusion

This project complies with the applicable due process steps, as set out in the UKEB Due Process Handbook published December 2022 on the UKEB website.

Footnotes

Footnotes

  1. The Exposure Draft Business Combinations-Disclosures, Goodwill and Impairment is available on the project page of the IASB website. ↩

  2. In accordance with the UKEB Due Process Handbook published December 2022 on the UKEB website. ↩↩↩↩↩↩