By David R. JonesSome investors and other users of financial information have expressed concerns about aspects of the International Accounting Standard Board's standard on business combinations, a review of the standard has found.In a post-implementation analysis published June 17 on International Financial Reporting Standard 3: Business Combinations, the IASB reported that users differed on the standard's provisions affecting accounting for goodwill, separate recognition of intangible assets and other requirements.Similarly, preparers, auditors and regulators pointed to areas in IFRS 3 in which implementation challenges have emerged and for which they are seeking IASB clarification.Provisions on Goodwill The 38-page post-implementation review of IFRS 3 Business Combinations, said that in subsequent accounting for goodwill, some investors support the standard's current requirements for non-amortization of goodwill.Some investors said the absence of impairment charges helps them verify whether an acquisition is working as expected.Other investors, however, “support the amortization of goodwill, because they think that goodwill acquired in a business combination is supported and replaced by internally generated goodwill over time,” according to the analysis.Intangible Assets Users also gave mixed assessments to separate recognition of intangible assets, with some calling the board's current practice of identifying such intangible assets as brands and customer relationships highly subjective.“They think that these intangible assets should be recognized only if there is a market for them,” the report said.Defining a Business Among preparers, auditors and regulators, many participants criticized the standard's definition of a business as vague.Some stakeholders urged the IASB to provide more detailed guidance on how to determine whether a transaction is a business combination or an asset acquisition, “especially when the processes acquired are not significant or when the entity acquired does not generate revenues,” the report said.Costs Versus Benefits Preparers and auditors also highlighted problems in measuring at fair value contingent consideration, contingent liabilities and such intangible assets as brand names and customer relationships.More broadly, some preparers questioned “the effort required and the costs incurred in order to meet the requirements in IFRS 3.”These burdens in some...