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The Interpretations Committee recommends that the Board finalise the proposed amendments to IFRS 3 and IFRS 11 subject to further discussions on a specific topic

 14 March 2017


IFRS 3 Business Combinations and IFRS 11 Joint Arrangements—Previously Held Interests (Agenda Paper 9)

The Committee discussed feedback on the proposed amendments to IFRS 3 and IFRS 11 that clarify how an entity accounts for previously held interests in situations in which it obtains control or joint control of a business that is a joint operation. These proposed amendments were included in the Exposure Draft Definition of a Business and Accounting for Previously Held Interests.

At this meeting, the Committee did not conclude on how an entity applies the remeasurement requirements in IFRS 3 to previously held interests in a joint operation—for example, whether an entity remeasures only assets and liabilities previously recognised or its entire previously held interest. The Committee recommended that the Board discuss this topic at a future meeting. Other than this topic, the Committee recommended that the Board finalise the proposed amendments to IFRS 3 and IFRS 11 with no significant changes.

Next steps

At a future Board meeting, the Board will discuss:

  1. how an entity applies the remeasurement requirements in IFRS 3 to previously held interests in a joint operation; and
  2. subject to the outcome of that discussion, the Committee’s recommendation to finalise the proposed amendments with no significant changes.