In its annual review of corporate reporting, the UK Financial Reporting Council (FRC) has highlighted a number of areas in which it is looking for future improvements, including business combinations. The areas of particular difficulty are:
- The disclosure of estimation uncertainty on the measurement of contingent consideration;
- The completeness of intangible assets other than goodwill identified; and
- The treatment of contingent consideration linked to future employment as remuneration rather than contingent consideration (as required by IFRS 3.B55).
Please let us know
if you have any comments about this article or enhancements you would like to see.