Business Combinations—Disclosures, Goodwill and Impairment

The IASB met on 22 July 2025 to discuss the proposed requirements in the Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment.

Auditability and audit expectations gap (Agenda Paper 18A) 

The IASB discussed:

1. the auditability of information about a business combination’s performance and expected synergies; and
2. the gap between auditors’ ability to verify the reasonableness of this information and users’ expectations.

The IASB was not asked to make decisions on these topics.

Restructuring and asset enhancement cash flows (Agenda Paper 18B) 

The IASB discussed its proposal to remove from IAS 36 Impairment of Assets the requirement for an entity to exclude cash flows from uncommitted future restructurings and asset enhancements when calculating value in use.

The IASB was not asked to make decisions on this topic.

Other IAS 36 proposals (Agenda Paper 18C) 

The IASB discussed other proposed amendments to IAS 36. The IASB tentatively decided to retain the proposals:

1. to require an entity to disclose the reportable segment in which a cash-generating unit or group of cash-generating units containing goodwill is included;
2. to remove the requirement for an entity to use pre-tax cash flows and a pre-tax discount rate for calculating value in use; and
3. to require an entity to disclose whether the discount rate used in calculating value in use is pre-tax or post-tax.

All 13 IASB members agreed with this decision.