Business Combinations under Common Control – International Accounting Standards Board

Date recorded:

At its meeting on February 27, 2020, the IASB met to discuss its research project on Business Combinations under Common Control, including with respect to disclosure and due process. With respect to disclosure, the Board:

  1. tentatively decided that when the acquisition method is used to account for the combination, a receiving entity would apply all disclosure requirements in IFRS 3 and all preliminary views on disclosure to be published in the forthcoming Discussion Paper in the project on Goodwill and Impairment;
  2. tentatively decided that it should provide guidance on applying the disclosure requirements of IFRS 3 and IAS 24 for a business combination under common control; and
  3. tentatively decided on the disclosures that should be made when the predecessor approach is used to account for the combination.

These tentative decisions complete the Board’s discussion about reporting business combinations under common control. The IASB staff will prepare a Discussion Paper for balloting and will ask the Board to set the comment period for the Discussion Paper at a future meeting.

Review the IASB Update and podcast on the Board's Web site.

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