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Comprehensive project update on business combinations under common control

  • IASB (International Accounting Standards Board) (blue) Image

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:

  1. What are these business combinations?
  2. Why is the Board doing the project?
  3. What is the focus of the project?
  4. What has the Board heard?
  5. Why not a single method in all cases?
  6. When would the acquisition method be applied?
  7. When would a book-value method be applied?
  8. What about costs to companies?
  9. How would financial reporting improve?
  10. What happens next?

Please click to access the comprehensive and informative update on the IASB website.

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