At its meeting on June 21-22, 2023, the AcSB completed its deliberations on the Exposure Draft, “Improvements to Accounting for Common Control Combinations." The Board approved the issuance of the amendments to Section 3840, Related Party Transactions; Section 1582, Business Combinations; and Section 3856, Financial Instruments. The amendments: (i) clarify the application of Section 1582 to business combinations under common control accounted for in accordance with Related Party Transactions, paragraph 3840.44(a); (ii) provide an option to retrospectively restate prior periods when carrying amounts are used to account for a combination or to prospectively account for these transactions; and (iii) clarify that financial instruments acquired or liabilities assumed when a business is transferred between two enterprises are initially measured in accordance with paragraph 3840.44. The Board intends to issue these amendments and the accompanying Basis for Conclusions in the Handbook by September 2023.

Review the Executive Summary on the AcSB's Web site.