Related Discussions

• Business Combinations under Common Control – International Accounting Standards Board

• Nov 14, 2023

• The IASB met on November 14, 2023, to discuss whether to continue to explore developing requirements for recognition and measurement or to change the project direction and decided to change the project direction. The IASB discussed whether to explore developing disclosure-only requirements or to discontinue the project and decided to discontinue the project.

• Business Combinations under Common Control – International Accounting Standards Board

• Sep 19, 2023

• The IASB met on September 19, 2023, to discuss the direction of its project on Business Combinations under Common Control. The IASB discussed feedback on the project direction including from public meetings with the IASB consultative groups and meetings with other stakeholders. The IASB also discussed the staff's analysis of that feedback and initial views on whether to change the project direction; and if so, whether to develop disclosure-only requirements or discontinue the project.

• Business Combinations under Common Control – International Accounting Standards Board

• Apr 25, 2023

• At its meeting on April 25-27, 2023, the IASB considered the direction of its project on Business Combinations under Common Control. The IASB discussed whether the merits of continuing in the current direction are likely to justify the necessary resources or whether to consider changing the direction. The IASB will seek feedback from its consultative groups before continuing its discussions.

• Business Combinations under Common Control – International Accounting Standards Board

• Nov 22, 2022

• At its meeting on November 22-24, 2022, the IASB met to discuss selecting the measurement method(s) that receiving entities would apply to business combinations under common control. The IASB was not asked to make any decisions. Th IASB will continue its discussions on selecting the measurement method(s) at a future meeting.

• Business Combinations under Common Control - International Accounting Standards Board

• Jun 20, 2022

• At its meeting on June 20-22, 2022, the IASB met to discuss its project on Business Combinations under Common Control. The IASB discussed whether conceptually the acquisition method and/or a book-value method should apply to business combinations under common control. In particular, the IASB discussed: (i) the similarities and differences between business combinations under common control and business combinations covered by IFRS 3; and (ii) the types of users of a receiving entity’s financial statements and their information needs compared to those of a business combination covered by IFRS 3. The IASB was not asked to make any decisions. The IASB will continue its discussions on selecting the measurement method, including practical considerations such as a cost constraint, at a future meeting.

• Business Combinations under Common Control – International Accounting Standards Board

• Mar 22, 2022

• At its meeting on March 22-24, 2022, the IASB met to deliberate the objective and scope of its Business Combinations under Common Control project. The IASB tentatively decided to update the project's objective to reflect the stage of the project and to emphasize that, in developing reporting requirements, the IASB is considering the needs of users of the receiving entity’s (that is, the reporting entity’s) financial statements. The IASB tentatively decided not to expand the project’s scope to address: (a) reporting by any entity in a business combination under common control other than the receiving entity; (b) the reporting, in separate financial statements, by a receiving entity obtaining control of an investment in a subsidiary from a party under common control; or (c) the reporting of common control transactions other than business combinations under common control. The IASB will deliberate other proposals arising from the project at a future meeting.

• Business Combinations under Common Control – International Accounting Standards Board

• Jan 25, 2022

• At its meeting on January 25, 2022, the IASB met to complete its discussion of feedback on the remaining topics from the Discussion Paper. The IASB discussed feedback on how an entity should apply the acquisition method and a book-value method to business combinations under common control, and the related disclosures an entity should be required to make. The IASB was not asked to make any decisions relating to this feedback.  The IASB also discussed a plan for deliberating proposals based on the preliminary views in the Discussion Paper.

• Business Combinations under Common Control – International Accounting Standards Board

• Dec 14, 2021

• At its meeting on December 14-16, 2021, the IASB met to discuss feedback on its Discussion Paper. The IASB discussed feedback on (a) the scope of the project and (b) selecting the measurement method. The IASB was not asked to make any decisions. The IASB will continue discussing feedback on other aspects of the Discussion Paper at a future meeting.

• Business Combinations under Common Control – AcSB

• Jul 21, 2021

• At its meeting on July 21-22, 2021, the AcSB discussed its draft response letter to the IASB’s Discussion Paper, and provided staff with comments to incorporate into its final letter. The AcSB encourages stakeholders to share their views on the Discussion Paper by submitting their response letters to the IASB by September 1, 2021, with a copy to the AcSB.

• Business Combinations under Common Control – International Accounting Standards Board

• Oct 27, 2020

• At its meeting on October 27-29, 2020, the IASB tentatively decided to extend the comment period for its upcoming discussion paper on business combinations under common control from 180 days to 270 days.

• Business Combinations under Common Control – International Accounting Standards Board

• Sep 22, 2020

• At its meeting on September 22-23, 2020, the IASB met to discuss the comment period for the forthcoming Discussion Paper on business combinations under common control. The Board decided to set a 180-day comment period for the Discussion Paper. The Board expects to publish a Discussion Paper in November 2020.

• Business Combinations under Common Control – International Accounting Standards Board

• Feb 27, 2020

• 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 (i) 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; (ii) 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 (iii) 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.

• Business Combinations under Common Control – International Accounting Standards Board

• Jan 29, 2020

• At its meeting on January 29, 2020, the IASB discussed feedback on its tentative decision on when each measurement approach would apply to transactions within the scope of the project and explored whether and, if so, how the exemption and the exception could be extended to entities whose equity instruments are traded in a public market. The Board was not asked to make any decisions. The IASB tentatively decided that when a receiving entity in a business combination under common control reports on that combination by applying a predecessor approach it would be required: (i) to measure consideration paid in assets at the carrying amounts of those assets at the date of the combination; (ii) to measure consideration in the form of incurred liabilities towards the transferor—or liabilities assumed from the transferor—at the carrying amounts of those liabilities, as determined in accordance with applicable IFRS Standards, on the initial recognition of those liabilities at the date of combination; (iii) to recognize transaction costs as an expense in the statement of profit or loss in the period in which they are incurred; (iv) to recognize costs related to the issue of debt or equity instruments in accordance with IAS 32 and IFRS 9; and (v) to recognize as a change in equity any difference between the consideration paid and the carrying amounts of assets and liabilities received. The Board tentatively decided not to prescribe: how a receiving entity would measure consideration paid in its own shares; and in which component or components of its equity a receiving entity would present any difference between the consideration paid and the carrying amounts of assets and liabilities received. These tentative decisions complete the Board’s discussions about how a predecessor approach would be applied by a receiving entity. At a future meeting, the Board will discuss what information an entity should disclose about its transactions within the scope of the project. The Board will also decide what type of consultation document to publish for this project and whether to begin the balloting process for that document.

• Business Combinations under Common Control – International Accounting Standards Board

• Dec 11, 2019

• At its meeting on December 11-12, 2019, the IASB met to discuss how the receiving entity in a business combination under common control should apply a current value approach based on the acquisition method set out in IFRS 3. The Board tentatively decided: (a) to require the receiving entity to recognize any excess fair value of the acquired identifiable net assets over the fair value of the consideration transferred as an increase in the receiving entity’s equity (contribution), and not as a gain on a bargain purchase in the statement of profit or loss; (b) not to require the receiving entity to identify, measure and recognize a distribution. The Board will discuss at a future meeting what information about the transaction price the receiving entity should provide in the notes to its financial statements to help users assess whether the fair value of the consideration transferred exceeds the fair value of the acquired interest. At future meetings, the Board will discuss how a predecessor approach should be applied and what information should be provided in the notes to the financial statements.

• Business Combinations under Common Control – International Accounting Standards Board

• Oct 22, 2019

• 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.

• Business Combinations under Common Control – International Accounting Standards Board

• Sep 25, 2019

• At its meeting on September 25, 2019, the IASB met to discuss this research project. The Board tentatively decided that the forthcoming discussion paper on Business Combinations under Common Control (DP) should not propose a single measurement approach for all transactions within the scope of the project. The Board tentatively decided that the forthcoming DP should set out a preliminary view that a current value approach based on the acquisition method should be required for transactions within the scope of the project that affect non-controlling shareholders of a receiving entity unless equity instruments of the receiving entity are not traded in a public market and one of the following conditions applies: (i) all non-controlling shareholders are the receiving entity’s related parties; or (ii) the receiving entity chooses to apply a predecessor approach and all its non-controlling shareholders have been informed about, and not objected to, the receiving entity applying that approach. The Board tentatively decided that the forthcoming discussion paper should propose a predecessor approach for all other transactions within the scope of the project. The Board will discuss at future meetings how a current value approach based on the acquisition method and a predecessor approach should be applied, and what information should be provided in the notes to financial statements.

• Business Combinations under Common Control – International Accounting Standards Board

• Jul 22, 2019

• At its meeting on July 22-25, 2019, the Board discussed: (i) the information needs of potential equity investors in the combining entities in relation to transactions that affect non-controlling shareholders of the receiving entity and to transactions that do not affect such shareholders; and (ii) an overview of how alternative measurement approaches could apply to transactions in the scope of the project, and the questions the Board will need to consider in developing such approaches. The Board expects to continue its discussion on methods of accounting for transactions within the scope of the project at future meetings.

• Business Combinations under Common Control – International Accounting Standards Board

• Jun 19, 2019

• At its meeting on June 19, 2019, the Board met to discuss transactions that do not affect non-controlling shareholders. The Board expects to continue its discussion on methods of accounting for transactions within the scope of the project at future meetings.

• Business Combinations under Common Control – International Standards Board

• Apr 09, 2019

• At its meeting on April 9-11, 2019, the Board directed the staff to continue developing measurement approaches for transactions within the scope of the project by considering: (i) whether and how transactions within the scope of the project can be different from business combinations that are not under common control; (ii) what information would be useful to various primary users of the receiving entity’s financial statements; (iii) whether the benefits of providing particular information would justify the costs of providing that information; and (iv) complexity and structuring opportunities that could arise under various approaches. The Board also tentatively decided that it need not pursue a single measurement approach for all transactions within the scope of the project. Specifically, the Board could pursue: (i) a current value approach for all or some transactions that affect non-controlling shareholders in the receiving entity; and (ii) a different approach, such as a form of predecessor approach, for transactions that affect lenders and other creditors in the receiving entity but do not affect non-controlling shareholders. The Board expects to continue its discussions on measurement approaches for transactions within the scope of the project at future meetings.

• Business Combinations under Common Control – International Accounting Standards Board

• Dec 12, 2018

• At its meeting on December 12, 2018, the Board discussed whether a current value measurement approach based on the acquisition method set out in IFRS 3, Business Combinations, should be applied to all or only some business combinations under common control that affect a non-controlling interest in a receiving entity. The Board also discussed how any such distinction should be made. The Board received a summary of the discussion of the topic held by the Accounting Standards Advisory Forum at its December 2018 meeting. At future meetings, the Board expects to continue its discussions on methods of accounting for transactions within the scope of the project.

• Business Combinations under Common Control – IASB

• Jul 17, 2018

• At its meeting on July 17, 2018, the Board received an update on this research project, including a summary of the discussion at the July meeting of the Accounting Standards Advisory Forum. The Board was not asked to make any decisions. The Board expects to continue discussion at future meetings on methods of accounting for transactions within the scope of the project.

• Business Combinations under Common Control – International Accounting Standards Board

• Jun 20, 2018

• At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) continued its discussion of current value approaches for business combinations under common control that affect non-controlling shareholders and directed the staff to develop an approach based on the acquisition method set out in IFRS 3 Business Combinations and to consider whether and how that method should be modified to provide the most useful information about business combinations under common control that affect non-controlling shareholders. The Board decided not to explore the 'full fair value approach'. Under that approach, a receiving entity would recognize: (a) a contribution to equity, or a distribution from equity, measured as the difference between the fair value of the consideration transferred and the fair value of the acquired business; and (b) goodwill measured as the excess of the fair value of the acquired business over the identifiable net assets acquired. The Board expects to continue discussion at future meetings on methods of accounting for transactions within the scope of the project.

• Business Combinations under Common Control - IASB

• Feb 22, 2018

• At its meeting on February 22, 2018, the Board tentatively decided to use the acquisition method set out in IFRS 3, Business Combinations as the starting point in its analysis of transactions within the scope of the project. Using that starting point will not determine whether the Board will ultimately propose applying the acquisition method to all, or even to many, transactions within the scope of the project.

• Business Combinations under Common Control - IASB

• Dec 13, 2017

• At its meeting on December 13-14, 2017, the IASB tentatively decided that the scope of the project also includes transactions involving transfers of one or more businesses where all of the combining parties are ultimately controlled by the same controlling party or parties, and the transactions are: (i) preceded by an external acquisition and/or followed by an external sale of one or more of the combining parties; or (ii) conditional on a future sale such as in an initial public offering. The Board expects to continue its discussions on the project in early 2018.

• Business Combinations under Common Control - IASB

• Oct 25, 2017

• At its meeting on October 25, 2017, the IASB discussed the scope of the Business Combinations under Common Control (BCUCC) research project. The Board tentatively decided to clarify that the scope of the BCUCC project includes transactions under common control in which a reporting entity obtains control of one or more businesses, regardless of whether IFRS 3, Business Combinations would identify the reporting entity as the acquirer if IFRS 3 were applied to the transaction. The Board expects to continue its deliberations on the project in December.