Thursday 24 April 2014
The aim of the research project is to understand the common forms of business combinations under common control and to identify issues arising from the accounting for such transactions.
Business combinations under common control are excluded from the scope of IFRS 3 Business Combinations. The absence of specific requirements has led to diversity in practice. Some of the common types of transactions include group restructurings and reorganisations, spin-off of business in contemplation of initial public offerings, etc. A related topic is ‘push down accounting’, which is also referred to as ‘fresh-start accounting’, where the new values of assets and liabilities in an acquired subsidiary are ‘pushed down’ to that subsidiary.
The staff commences research on the topic
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