UK Endorsement Board publishes draft comment letter on the IASB’s DP/2020/2 Business Combinations under Common Control

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28 May, 2021

The UK Endorsement Board has published its draft comment letter on the International Accounting Standard Board’s (IASB's) Discussion Paper DP2020/02 Business Combinations under Common Control ("BCUCC").

In its draft comment letter the UK Endorsement Board supports the proposals in the discussion paper and indicate that the proposals will provide users of financial statements with information on BCUCC which it calls a 'significant step forward from the minimal information required today'.

In particular, the UK Endorsement Board expect the proposals in the Discussion Paper will lead to improvements over current financial reporting as follows:

  • Measurement and disclosure requirements in the DP will reduce diversity in accounting practice, improve transparency and lead to greater comparability between financial statements.
  • The proportionate approach, whereby the book value method is required in situations where non-controlling shareholders are not affected, will reduce complexity and cost for preparers.

Comments on the draft comment letter are requested by 30 June 2021. For more information, see the UKEB's website.

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