In this article published in the Australian Accounting Review, International Accounting Standards Board (Board) Member Ann Tarca explains the Board’s preliminary views for accounting for business combinations under common control, an issue not currently addressed in IFRS Standards. Such combinations are widespread and the accounting for them is diverse. The Board’s preliminary views aim to reduce diversity in practice and to improve the information provided to investors so they can understand the effects of these transactions and compare companies that undertake them.
The Australian Accounting Review also features two additional articles relating to business combinations under common control (BCUCC):
All three articles are free to access until December 2021.
Comment letters submitted to the Board are available here. The consultation period closed 1 September 2021. The Board will consider the feedback provided by respondents before deciding whether to develop an exposure draft containing proposals to implement any or all of its preliminary views.