IFRS News

IFRS business combinations changes begin to bite

Big changes to IFRS requirements on business combination accounting take effect from 30 June 2010 year ends onwards. If your company has made an acquisition recently or is planning one, these changes will affect you. A key difference is that most changes to earn-outs and other contingent consideration arrangements subsequent to the acquisition will impact on reported profits, potentially causing earnings volatility.

Changes to rules on provisions and contingencies are on the way. These could have a big impact on the treatment of potential liabilities for litigation costs. The International Accounting Standards Board (IASB) is also ploughing on with its project to overhaul rules on financial instruments accounting.

Around the World, the US Securities and Exchange Commission has made its long-awaited announcement on plans to incorporate IFRS into the US financial reporting system, though a final decision will not be made until 2011. India and Brazil have both taken steps towards IFRS adoption.

For a deeper insight into these issues, and to find out the very latest on IFRS developments, download the latest edition of IFRS News.

IFRS News – a quarterly publication – has been developed by Grant Thornton International to summarise IFRS significant developments and provide insight into topical reporting issues. Clients of Grant Thornton UK LLP can access the knowledge and experience of more than 2,400 partners in over 100 countries through Grant Thornton International.

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