IASB releases IFRS3-IAS 27 revisions

Accounting Standards Board
(IASB) and USA’s
Financial Accounting Standards
(FASB) have jointly completed the second phase of the business
combinations project paving the way yesterday for IASB to release the revised
version of IFRS 3 Business Combinations and an amended version of IAS 27
consolidated and separate financial statements. The new requirements will come
into force on July 1, 2009, although businesses can adopt them earlier.

IASB said that, in publishing its equivalents to IFRS 3 and IAS 27, FASB had
made fundamental changes to its accounting for business combinations, most of
which brought US accounting in line with the existing IFRS 3 and IAS 27.

Other improvements would change both IFRSs and US GAAP. The revised IFRS 3
reinforced the existing IFRS 3 model but remedied problems which had emerged in
its application.

Commenting on the announcement, Sir David Tweedie, IASB Chairman, said the
accounting requirements in IFRSs and US GAAP would now be substantially the
same, ‘thanks largely to the changes that the FASB has made to US GAAP. The
changes to IFRSs have, in contrast, been relatively small,’ he said.

Further reading:

IASB draft leaves SMEs in the cold

Banks eye US accounting standards

Related reading

Fiona Westwood of Smith and Williamson.