BC21A Following a Post-implementation Review (PIR) of IFRS 3, the Board noted that many stakeholders had concerns about how to interpret and apply the definition of a business. Stakeholders indicated that these concerns arose for one or more of the following main reasons:
(a) IFRS 3 requires a fact-driven assessment that adopts the perspective of market participants and does not consider the business rationale, strategic considerations and objectives of the acquirer (see paragraph BC21G);
(b) some sets of activities and assets might have been considered a business from the perspective of particular market participants who could integrate the set in their processes. However, the same sets of activities and assets might not have been considered a business from the perspective of other market participants (see paragraphs BC21H-BC21I);
(c) the definition of a business used the wording ‘capable of being conducted and managed for the purpose of providing’ a return. That wording did not h
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