Common control transactions


This project is designed to address accounting for transactions between entities that are ultimately controlled by the same party or parties (so-called 'common control transactions').

As business combinations of entities under common control are currently excluded from the scope of IFRS 3 Business Combinations, companies account for such transactions in different ways. This makes it difficult for investors and regulators to compare the effects of those transactions on companies' financial positions and performances. The IASB's research project is therefore aimed at potentially filling this gap in IFRSs to improve the comparability and transparency of reporting these combinations. The forthcoming discussion paper is intended to help the IASB assess whether it can develop requirements that would improve the comparability and transparency of accounting for combinations under common control.

Note: The IFRS Interpretations Committee has considered numerous issues related to common control transactions, often declining to add these matters to its agenda in favour of referring it to the IASB for consideration as part of this project.  This page also includes these discussions for reference purposes.

Current status of the project

The IASB added this project to its agenda at its December 2007 meeting but there were no deliberations.  In December 2012, as part of its response to the Agenda consultation 2011, the IASB formally reactivated this project as an IASB-only research project. A discussion paper was published on 30 November 2020 with comments requested by 1 September 2021.

Project milestones

Date Development Comments
December 2007 Added to the IASB's agenda
December 2012 Reactivated as an IASB-only research project Discussion Paper to be published before an agenda decision is made
30 November 2020 DP/2020/2 Business Combinations under Common Control published Comments requested by 1 September 2021

Correction list for hyphenation

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