Business Combinations under Common Control

The Board began discussing its Business Combinations Under Common Control project with an update from staff on the approaches being developed. As previously agreed, staff are starting their work using the principles of IFRS 3, Business Combinations. To begin with, they discussed a simple case where company A and company B are owned by the same parent company; there is a non-controlling interest in company A which acquires company B. The Board considered the accounting in the light of the information requirements of the non-controlling interests in company A. They started with the basic principle of using fair values which staff concluded provided the most relevant information about the economics of the transaction.