Business combinations under common control are excluded from the scope of IFRS 3 Business Combinations. As a consequence, the accounting for those transactions diverges in practice. The project on common control transactions will examine the definition of common control and the methods of accounting for business combinations under common control�in the acquirer�s consolidated and separate financial statements. The project will also consider the accounting for demergers, such as the spin-off of a subsidiary or business.

Last IASB meeting update

The project is currently paused.

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Next discussion by the IASB

In the light of other priorities, the Board paused the project and directed the staff to consider at a later date whether it should resume its work on common control transactions. The date is yet to be confirmed.