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The Interpretations Committee tentatively decided not to include these transactions within the scope of its project

 08 September 2015


The Interpretations Committee discussed whether previously held interests in the assets and liabilities of a joint operation should be remeasured in the following transactions when the asset or group of assets involved in such transactions do not meet the definition of a business in accordance with IFRS 3 Business Combinations:

  1. obtaining control of a joint operation, either from having joint control in, or being a party to a joint operation prior to the transaction; and
  2. a change of interests resulting in a party to a joint operation obtaining joint control over the joint operation. The party to the joint operation had rights to the assets and obligations for the liabilities relating to the joint operation prior to the transaction.

The Interpretations Committee noted that paragraph 2(b) of IFRS 3 provides guidance on the typical accounting for an asset acquisition where the asset or group of assets do not meet the definition of a business. The Interpretations Committee also observed that it was not aware of significant diversity in practice and therefore [decided] not to add the accounting for these transactions to its agenda.




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