The IASB’s discussion paper Business combinations under common control, published today for responses by 1 September 2021:
- notes that IFRS 3 Business Combinations does not specify how to report transactions that involve transfers of businesses between companies within the same group
- adds that companies report similar business combinations in different ways: some provide fair-value information about the acquired company, others provide book-value information – in various ways and often insufficiently
- proposes requirements for:
– fair-value information when a business combination under common control affects shareholders outside the group
– book-value information otherwise, using a single approach to be specified - seeks view on:
– the selection of the measurement method
– how to apply each measurement method
– disclosure of information