International Financial Reporting Standard 3 Business combinations (2008): determining whether net economic resources acquired constitute a business

With globalization the economic operations between entities become more complicated. Therefore, financial accounting of these economic operations and their presentation in financial statements also are increasingly complex. Thus international financial accounting standards and implementation which are subsequently applied by entities need to be suitable to the newest requirements of business. Thus researchers and practitioners should study international financial reporting standards to address such improvements. The paper explores ways to improve IFRS 3 Business Combinations (2008). It considers the revision of the definition of outputs and clarification of “merger of equals” and “joint arrangements” definitions.