The Authority Issues Its View on the Amendment to International Financial Reporting Standard No. 3 and International Accounting Standard No. 36

الهيئة تبدي وجهة النظر في تعديل المعيار الدولي للتقرير المالي رقم 3 والمعيار الدولي للمحاسبة رقم 36

The International Accounting Standards Board published a draft amendment to IFRS 3 and IAS 36 concerning disclosures and goodwill impairment measurement. The Saudi Organization for Chartered and Professional Accountants (SOCPA), through its Accounting Standards Board, found the required disclosures on strategic business combinations appropriate but proposed the international board reconsider available disclosure exemptions, which could cause inconsistent application among entities, and suggested widening the qualitative criteria for defining strategic business combinations. On goodwill impairment, SOCPA supported proposed clarifications on allocating goodwill to cash-generating units and disclosing segments containing them, but considered that allowing inclusion of future cash flows from restructuring the entity has not committed to, when calculating value in use, could raise management optimism about the asset and delay impairment recognition.

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