Comprehensive project update on business combinations under common control
30 Jun, 2020
The IASB is currently working on a research project on combinations of businesses under common control as IFRS 3 'Business Combinations' only covers how to account for mergers and acquisitions between unrelated parties. IASB member Gary Kabureck has compiled a comprehensive project update that summarises and discusses the preliminary views the Board has so far reached in the project.
Mr Kabureck's update is structured along the following ten questions:
- What are these business combinations?
- Why is the Board doing the project?
- What is the focus of the project?
- What has the Board heard?
- Why not a single method in all cases?
- When would the acquisition method be applied?
- When would a book-value method be applied?
- What about costs to companies?
- How would financial reporting improve?
- What happens next?
Please click to access the comprehensive and informative update on the IASB website.