Deloitte comment letter on tentative agenda decision on IAS 28 — Acquisition of an associate or joint venture from an entity under common control

Published on: 21 Aug, 2017

We have commented on the IFRS In­ter­pre­ta­tions Committee's pub­li­ca­tion in the June 2017 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clar­i­fi­ca­tion on the accounting for an acquisition of an interest in an associate or joint venture from an entity under common control.

We agree with the IFRS In­ter­pre­ta­tions Committee's decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision. However, we believe that the issues arising from common control transactions should be addressed holistically and recommend the deletion of the statement that “the entity determines the cost of the investment taking into account that transaction with owners.”

Download the full comment letter below.


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