Business Combinations under Common Control: Filling a Gap in IFRS Standards

The aim of this paper is to explain the International Accounting Standards Board's (IASB) preliminary views for accounting for business combinations under common control, an issue not currently addressed in International Financial Reporting Standards. Such combinations are widespread and the accounting for them is diverse. The IASB'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.

Accounting for business combinations under common control is not currently addressed in International Financial Reporting Standards. The author describes some of the International Accounting Standard Board's proposals to reduce diversity and improve investors’ information in this area.