MNP Comment Letter - Definition of a Business and Accounting for Previously Held Interests Exposure Draft (International)

Category: IFRS

MNP Comment Letter - Definition of a Business and Accounting for Previously Held Interests Exposure Draft (International)

Excerpt

To summarize, as a result of our concerns mentioned above, we ask that the Board consider whether there should be guidance included in IFRS 3's application material whereby the acquisition of a set of activities and assets that is considered very far from producing outputs cannot be considered to meet the definition of a business. In other words, the revised application guidance should indicate that how far the set of activities and assets is from producing outputs should be a key factor to consider when determining whether the set of activities and assets meets the definition of a business. In addition, this consideration of how far the set of activities and assets are from producing outputs may be conclusive in some circumstances. Overall, whether a very early stage entity meets the definition of a business should ultimately be a matter of judgement with consideration of the nature of the industry in which the entity operates and the efforts required by the entity before it will be able to produce outputs.

MNP Comment Letter

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Michelle Balmer

Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.