BC210 If an entity elects to apply IFRS 3 from any date before the effective dates outlined in IFRS 3, it is also required to apply IAS 36 from that same date. Paragraphs BC181-BC184 of the Basis for Conclusions on IFRS 3 outline the Board’s deliberations on this issue. [The Board issued a revised IFRS 3 in 2008. This paragraph relates to IFRS 3 as issued in 2004.]

BC211 Otherwise, IAS 36 is applied:

(a) to goodwill and intangible assets acquired in business combinations for which the agreement date is on or after 31 March 2004; and

(b) to all other assets prospectively from the beginning of the first annual period beginning on or after 31 March 2004.

BC212 In developing the requirements set out in paragraph BC211, the Board considered whether entities should be required:

(a) to apply retrospectively the revised impairment test for goodwill; and

(b) to apply retrospectively the requirement prohibiting reversals of impairment losses for goodwill and therefore eliminate any reversals recognised before the date the revised Standard was issued.

BC213 The Board concluded that retrospective application of the revised impairment test for goodwill would be problematic for the following reasons: