The amendments in this Update clarify the definition
of a business with the objective of adding guidance to assist entities
with evaluating whether transactions should be accounted for as acquisitions
(or disposals) of businesses.
The amendments in this Update provide a screen to determine when
a set is not a business. If the screen is not met, it (1) requires
that to be considered a business, a set must include, at a minimum,
an input and a substantive process that together significantly contribute
to the ability to create output and (2) removes the evaluation of
whether a market participant could replace the missing elements.
This Update is the final version of Proposed Accounting Standards
Update 2015-330 BusinessCombinations (Topic 805)- Clarifying The Definition
of a Business, which has been deleted.
Accounting Standards Update No. 2017-01
Issued: January 5, 2017