SOCPA Expresses Its View on an IFRIC Tentative Decision
The International Accounting Standards Board (IASB) has published a draft tentative decision by the International Financial Reporting Interpretations Committee (IFRS IC) on how to apply the requirements of IFRS 3 "Business Combinations" related to payments linked to continued employment during the transitional phase of a business combination. The IFRIC has tentatively decided not to address the inquiry, considering that the issue is not widespread.
The Saudi Organization for Chartered and Professional Accountants (SOCPA) has noted that the subject of the inquiry pertains to existing requirements within the standard that need clarification. This necessitates a review of the clarity of the requirements to ensure consistent application regarding whether the discussed payments are part of the acquisition consideration or employee benefits unrelated to acquisition consideration.
To view SOCPA's perspective, click here.