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

In its draft comment letter on the discussion paper published in November 2020, EFRAG

• supports the proposed scope of the discussion paper but considers that the IASB should better define 'group restructurings' without labelling them Business Combinations under Common Control (BCUCC) when they do not meet the description of a business combination in IFRS 3 Business Combinations;
• agrees that a single measurement method is not appropriate for all BCUCC and supports the two concepts of acquisition method and book-value method but proposes a few modifications to the IASB’s decision tree on when to apply each method;
• generally agrees with the IASB's proposals on how to apply the two methods but is consulting constituents on certain aspects of both methods;
• supports the proposed disclosure requirements for BCUCC accounted for under both the acquisition method and a book-value method.

Comments on EFRAG's draft comment letter are requested by 30 July 2021. For more information, see the press release and the draft comment letter on the EFRAG's website.

The webinars lasted approximately 60 minutes and consisted of an overview of the standard’s objectives and related research opportunities, followed by questions and answers.

For more information, see the press release on the IASB’s website.

The event will focus on the views of European investment decision-makers and information that they consider important in this area. The audience will be able to contribute to the discussion through polling questions and Q&A sessions. 

For more information and registration, please see the press release on the EFRAG website.

A recording of this webinar was released on 8 March 2021.

A summary report on the webinar was released on 12 May 2021.

A summary of the agenda is set out below:

Agenda papers for the meeting are available on the IASB website.

During the meeting, the IASB will discuss the following:

• Financial in­stru­ments with char­ac­ter­is­tics of equity
• Management commentary
• Agenda consultation
• Disclosure initiative — Subsidiaries that are SMEs
• SME Standard review and update
• Extractive activities

The full agenda for the meeting can be found here. We will post any updates to the agenda, our com­pre­hen­sive pre-meet­ing summaries, as well as observer notes from the meeting on this page as they become available.

The Committee discussed the feedback on one tentative agenda decision and two new issues.

Agenda decision to finalise

IFRS 10 Consolidated Financial Statements and IFRS 16 Leases—Sale and Leaseback of an Asset in a Single-asset Entity: In September 2020, the Committee discussed the applicability of the sale and leaseback requirements in IFRS 16 to a transaction in which an entity sells its equity interest in a subsidiary that holds only a real estate asset and then leases that real estate asset back. The staff concluded that IFRS 10:25 and B97-B99 apply to the accounting for the loss of control of the subsidiary and IFRS 16:100(a) applies for measuring of the right of use (ROU) asset and the gain on the leaseback arrangement. However, in this meeting, most of the Committee members considered the requirements in IFRS Standards do not provide an adequate basis to support the analysis and conclusion in more complex situations. Therefore, the Committee decided to propose a narrow-scope standard setting project to the Board.

New issues

IAS 2 Inventories—Cost necessary to sell inventories: The Committee members generally agreed that the costs to include as part of the estimated costs necessary to make the sale when determining the net realisable value of inventories should not be limited  to incremental costs but should include other costs necessary to make the sale. Consequently, the Committee decided not to add the matter to the Committee’s standard-setting agenda but publish a tentative agenda decision.

IAS 10 Events after the Reporting Period—Preparation of Financial Statements when an Entity is No Longer a Going Concern: The Committee concluded that the financial statements for all prior periods which had not been issued could not be prepared on a going concern basis if it intends to liquidate the entity subsequently. The Committee did not analyse the issue of restatement of comparative information in respect of the preceding period given the issue is not widespread.

The Committee agreed with the staff’s recommendation not to add the matter to the Committee’s standard-setting agenda as the matter is not widespread and there is no evidence of diversity in practice.

More Information

Please click to access the detailed notes taken by Deloitte observers.

IFRS 16 and COVID-19: The amendments to IFRS 16 the IASB made in relation to rent concessions and COVID-19 provide a practical expedient that applied to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2021. The Board decided to publish a proposal to amend IFRS 16 to extend that expedient to 30 June 2022. The Board decided that the amendments should be applied retrospectively. One Board member plans to dissent. The proposals will have a 14-day comment period. The staff think they can publish final amendments by the end of March 2021.

Please click to access the detailed notes taken by Deloitte observers for the entire meeting.

A recording of the webinar is now available. It can be accessed here on the IASB website.

A recording of the webinar is now available. It can be accessed here on the IASB website.

The guidance will apply to the unique sector-specific aspects of the annual general purpose financial reports, considering accounting issues as well as narrative reports that accompany financial statements. It will improve the clarity and consistency of non-profit organisations' financial reports, resulting in greater credibility and trust in the not-for-profit sector globally. The International Accounting Standards Board (IASB) and the International Public Sector Accounting Standards Board (IPSASB) are aware and actively observing the development process.

The consultation paper has two parts:

• PART 1: General NPO financial reporting issues
• PART 2: NPO-specific financial reporting issues

Comments on part 1 are requested by 30 July 2021, on part 2 by 24 September 2021.

Please click for the following additional information on the IFR4NPO website:

• Access to the consultation paper (note that the paper is also available in Spanish, French and Arabic at the end of the page)
• Press release