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Wednesday 30 July 2014

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Mandatory purchase of non-controlling interests in business combination


 Interpretations Committee issues considered but transferred to the IASB

IFRS 3 Business Combinations: Mandatory purchase of non-controlling interests in business combination

The Interpretations Committee was asked to address the accounting for mandatory purchases of non-controlling interests that arise as a result of business combinations. IFRS 3 Business Combinations does not address the accounting for a sequence of transactions that begins with an acquirer gaining control of an entity and is followed shortly thereafter by the acquisition of additional ownership interests as a result of a regulatory requirement that obliges the acquirer to offer to purchase the ownership interests of non-controlling-interest shareholders.

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