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).