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IFRS® Accounting Standards

Business Combinations under Common Control

Summary

The Accounting Standards Board (AcSB) is monitoring the International Accounting Standards Board’s (IASB) Business Combinations under Common Control project.

IFRS® Accounting Standards do not specify how to account for combinations of companies or businesses controlled by the same party. As a result, companies account for such transactions in different ways, which makes it difficult for investors and regulators to compare the effects of those transactions on companies' financial positions and performances.

The IASB explored whether to develop requirements for reporting business combinations under common control. In November 2023, the IASB decided to discontinue the project.

Refer to the IASB Business Combinations under Common Control project page for more information. 

 

Staff Contact(s)

Mark Squire, CPA, CA Principal, Accounting Standards Board

Phone number  +1 647 264 3810
Email address  [email protected]
Andrew White, CPA, CA Associate Director, Accounting Standards Board

Phone number  +1 416 204 3487
Email address  [email protected]

Project Status

  • Information gathering

    Completed before June 2014

  • Approving project

    The IASB approved a project in June 2014

  • Engaging Communities

    IASB Discussion Paper issued in November 2020

  • Deliberating feedback

    IASB deliberated feedback on its Discussion Paper

    The IASB decided to discontinue the project in November 2023

  • Final pronouncement

News

September 7, 2021

International Activity

AcSB Response – Business Combinations under Common Control

On August 25, 2021, the AcSB responded to the IASB’s Discussion Paper, issued in November 2020. The AcSB’s letter generally supports the proposed accounting model for business combinations under common control as it will increase the usefulness, understandability, and comparability of an entity’s financial statements. The letter provides suggestions in certain areas to ease concerns with applying the proposals. Read our letter to find out more!

December 14, 2020

International Activity

IASB Discussion Paper – Business Combinations under Common Control

How do you account for business combinations under common control? The IASB recently issued its Discussion Paper - Business Combinations under Common Control. It includes proposals that aim to reduce the diversity in practice and improve the transparency and comparability of the reporting on such combinations. Have your say by responding to the IASB directly by September 1, 2021 You can also share your feedback with the AcSB by connecting with the AcSB staff on this project. We will consider your comments prior to finalizing our comment letter.

Meeting & event summaries

August 4, 2021

AcSB Decision Summary – July 21-22, 2021

The AcSB discussed its draft response letter to the International Accounting Standards Board’s (IASB’s) Discussion Paper, “Business Combinations under Common Control,” and provided staff with comments to incorporate into its final letter. The AcSB encourages stakeholders to share their views on the Discussion Paper by submitting their response letters to the IASB by September 1, 2021, with a copy to the AcSB.

July 8, 2021

AcSB Decision Summary – June 16-17, 2021

The AcSB discussed the key issues to include in its response letter to the International Accounting Standards Board’s (IASB) Discussion Paper, “Business Combinations under Common Control.” The Board considered stakeholder feedback obtained to date through its outreach on this topic, including through its community platform. The Board will discuss its draft response letter at its July 2021 meeting.

The AcSB encourages stakeholders to share their views on the Discussion Paper by submitting their response letters to the IASB by September 1, 2021, with a copy to the AcSB. If respondents would like the AcSB to consider their comments when drafting its letter to the IASB, they should submit their response letters to the AcSB or share their feedback on the Discussion Paper through the community platform by July 31, 2021.

March 8, 2021

AcSB Decision Summary – February 24, 2021

The AcSB received an education session on the International Accounting Standards Board’s (IASB) Discussion Paper, “Business Combinations under Common Control.”

The AcSB discussed and approved a plan to respond to the IASB’s Discussion Paper, which includes undertaking activities such as:

  • stakeholder outreach through its community platform; and
  • consulting with the Board’s advisory committees.

Stakeholders are encouraged to share their feedback on the Discussion Paper through the community platform and monitor the project page for updates on the project. The comment period deadline to submit a response letter to the IASB is September 1, 2021.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.