Common Control Transactions
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.
Next due process step
The project is currently paused. The IASB staff plans to present a comprehensive project outline to the Board when the project resumes.
Due process steps completed
Stage 1: Setting the agenda
At its December 2007 meeting, the Board decided to add the common control project to its agenda.
Stage 2: Project Planning
The common control project is currently an IASB-only project. However, the Board will discuss with the FASB and other national standard setters whether the project should be conducted as a joint project.
The IASB will consider whether it should establish a working group when the project resumes.
Stage 3: Development and publication of a discussion paper
The Board will decide whether the first due process document should be a discussion paper or an exposure draft when the project resumes.
Further information
The staff will add a full project summary when the project resumes.