IASB concludes project on business combinations under common control
The International Accounting Standards Board (IASB) has wrapped up its project on Business Combinations under Common Control (BCUCC) with the publication of a project summary – the main takeaway being: no action is the way forward.
IFRS 3 Business Combinations lacks guidance on transactions involving transfers of businesses between entities under common control, such as companies within the same group.
A Discussion Paper released in 2020 outlined the IASB’s initial views on addressing this gap to enhance transparency and comparability. However, the IASB has decided against developing reporting requirements for BCUCCs given conflicting concerns about costs and benefits and existing investor work arounds.
Access the project summary here.
