Reference to the Conceptual Framework (Amendments to IFRS 3)


The amendments related to this project, Reference to the Conceptual Framework (Amendments to IFRS 3) were published by the IASB in May 2020. These amendments are effective for annual periods beginning on or after 1 January 2022, with early application permitted.

Originally, IFRS 3 Business Combinations required an entity to refer to an older version of the Conceptual Framework (that existed when IFRS 3 was developed) to determine what constitutes an asset or a liability. The purpose of this project was to update IFRS 3 to require an entity to refer instead to the Conceptual Framework issued in March 2018.

The amendments to IFRS 3 also added to IFRS 3 an exception to its requirement for an entity to refer to the Conceptual Framework. The exception specifies that, for some types of liabilities and contingent liabilities, an entity applying IFRS 3 should instead refer to IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies. This exception was added to avoid an unintended consequence of updating the reference to the latest Conceptual Framework.

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