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IFRS® Accounting Standards

Business Combinations under Common Control

Summary

The Accounting Standards Board (AcSB) is monitoring the International Accounting Standards Board’s (IASB) Business combinations under common control project.

IFRS® Standards do not specify how to account for combinations of companies or businesses controlled by the same party. As a result, companies account for such transactions in different ways, which makes it difficult for investors and regulators to compare the effects of those transactions on companies' financial positions and performances.

The IASB is developing requirements that would improve the comparability and transparency of accounting for combinations under common control to help investors compare and better understand information that companies provide in financial statements about such transactions.

Refer to the IASB Business Combinations under Common Control project page for more information. 

 

Staff Contact(s)

Mohamed Hassanali, CPA, CA Associate Director, Accounting Standards Board

Phone number  +1 416 204 2967
Email address  [email protected]
Andrew White, CPA, CA Associate Director, Accounting Standards Board

Phone number  +1 416 204 3487
Email address  [email protected]

Project Status

  • Information gathering

    Completed before June 2014

  • Approving project

    The IASB approved a project in June 2014

  • Consulting stakeholders

    IASB Discussion Paper issued in November 2020

  • Deliberating feedback

    IASB deliberating feedback on its Discussion Paper

  • Final pronouncement

News

September 7, 2021 International Activity
AcSB Response – Business Combinations under Common Control

On August 25, 2021, the AcSB responded to the IASB’s Discussion Paper, issued in November 2020. The AcSB’s letter generally supports the proposed accounting model for business combinations under common control as it will increase the usefulness, understandability, and comparability of an entity’s financial statements. The letter provides suggestions in certain areas to ease concerns with applying the proposals. Read our letter to find out more!

December 14, 2020 International Activity
IASB Discussion Paper – Business Combinations under Common Control

How do you account for business combinations under common control? The IASB recently issued its Discussion Paper - Business Combinations under Common Control. It includes proposals that aim to reduce the diversity in practice and improve the transparency and comparability of the reporting on such combinations. Have your say by responding to the IASB directly by September 1, 2021 You can also share your feedback with the AcSB by connecting with the AcSB staff on this project. We will consider your comments prior to finalizing our comment letter.

Meeting & event summaries

August 4, 2021 AcSB Decision Summary – July 21-22, 2021

The AcSB discussed its draft response letter to the International Accounting Standards Board’s (IASB’s) Discussion Paper, “Business Combinations under Common Control,” and provided staff with comments to incorporate into its final letter. The AcSB encourages stakeholders to share their views on the Discussion Paper by submitting their response letters to the IASB by September 1, 2021, with a copy to the AcSB.

July 8, 2021 AcSB Decision Summary – June 16-17, 2021

The AcSB discussed the key issues to include in its response letter to the International Accounting Standards Board’s (IASB) Discussion Paper, “Business Combinations under Common Control.” The Board considered stakeholder feedback obtained to date through its outreach on this topic, including through its community platform. The Board will discuss its draft response letter at its July 2021 meeting.

The AcSB encourages stakeholders to share their views on the Discussion Paper by submitting their response letters to the IASB by September 1, 2021, with a copy to the AcSB. If respondents would like the AcSB to consider their comments when drafting its letter to the IASB, they should submit their response letters to the AcSB or share their feedback on the Discussion Paper through the community platform by July 31, 2021.

March 8, 2021 AcSB Decision Summary – February 24, 2021

The AcSB received an education session on the International Accounting Standards Board’s (IASB) Discussion Paper, “Business Combinations under Common Control.”

The AcSB discussed and approved a plan to respond to the IASB’s Discussion Paper, which includes undertaking activities such as:

  • stakeholder outreach through its community platform; and
  • consulting with the Board’s advisory committees.

Stakeholders are encouraged to share their feedback on the Discussion Paper through the community platform and monitor the project page for updates on the project. The comment period deadline to submit a response letter to the IASB is September 1, 2021.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.