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IASB Discussion Paper 2020/1 Business Combinations—disclosures, goodwill and impairment

IASB Discussion Paper 2020/1 Business Combinations—disclosures, goodwill and impairment

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​WSBI-ESBG support IASB preliminary views to develop proposals to remove restriction that prohibits firms from including some cash flows in estimating value in use.


>> Read full response (.pdf)

>> See related IASB discussion paper




​BRUSSELS, 7 December 2020 —​ WSBI-ESBG welcomes the opportunity to comment (.pdf) on the IASB discussion paper 2020/1 Business Combinations—Disclosures, Goodwill

The two associations can understand the investor's need to have information about the subsequent performance of an acquisition, however, we do not share how this issue is addressed in the discussion paper and we are concerned about some of the preliminary views being proposed. In a regulated sector, such as the banking sector, subject to a high level of scrutiny, there are to this day several information tools and channels at investor's disposal that allow them to assess effectively the performance of banks after corporate operations of this kind. 

We agree with IASB's preliminary view that it should retain the requirement for companies to prepare pro forma information in the year of acquisition. However, the IASB may provide alternatives, which could work for preparers from a cost/benefit perspective when preparing current disclosures, by allowing the disclosure of the revenue and profit or loss of the acquiree for the period before the acquisition date, instead of this pro forma information. We support IASB's preliminary views to develop proposals to remove the restriction that prohibits companies from including some cash flows in estimating value in use.


>> See full response (.pdf)




Accounting Standards; Accountancy; Investments