Business Combinations under Common Control – International Accounting Standards Board
At its meeting on October 22, 2019, the IASB met and discussed this research project. Specifically, the Board discussed how a predecessor approach should be applied and tentatively decided: (i) that a receiving entity should recognize and measure assets and liabilities transferred in a business combination under common control at the carrying amounts included in the financial statements of the transferred entity; and (ii) that pre-combination information in the primary financial statements should be provided only about the receiving entity. At future meetings, the Board will complete its discussion of how a predecessor approach should be applied, discuss whether and how the acquisition method should be modified for transactions within the scope of the project, and discuss what information should be provided in the notes to the financial statements.
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