IASB Floats Rule Changes on Acquisition Disclosures

Elvera Bartels

The International Accounting Standards Board is thinking about variations to its guidelines that would involve businesses to disclose much more info about how their acquisitions have carried out.

In a dialogue paper introduced on Thursday, the IASB mentioned investors want much more info on irrespective of whether takeovers stay up to expectations and imagine current disclosures required less than IFRS guidelines — these as the yearly test for goodwill impairment — are not ample.

The board’s preliminary check out is that the requirement to disclose the primary causes for an acquisition ought to be changed with a requirement to disclose the strategic rationale for endeavor an acquisition and management’s targets for the acquisition at the acquisition date.

Furthermore, the info a business discloses about an acquisition’s subsequent overall performance “should replicate the info and metrics the company’s management makes use of to check and evaluate the acquisition’s progress from the

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