Business Combinations Under Common Control Survey

Date: 19 April 2021

The UK Endorsement Board secretariat has launched its survey on IASB Discussion Paper DP/2020/2 Business Combinations Under Common Control (BCUCC).

We are seeking your views on the proposals in the Discussion Paper, as well as information about your past experiences with BCUCC. The survey is multiple choice and should take around 15 minutes to complete. Your responses providing answers to individual questions or to the full survey will be valuable to us. The survey is open until COB 30 April 2021.

The discussion paper proposes a multipath approach to accounting for BCUCC in the Receiving Company of the transaction. Key proposals include:

  • If the Receiving Company is listed or has non controlling shareholders the IFRS 3 acquisition accounting method is used (with some limited exceptions)
  • In all other circumstances the book value method will be used.
  • The Discussion Paper specifies which book value should be used if using the book value method.
  • The Discussion Paper specifies how any difference between consideration and the value of the assets and liabilities acquired should be accounted for.
  • Disclosure requirements are introduced for BCUCC.

The survey can be accessed here.

If you would like more information on the Discussion Paper requirements, our recent educational video made in conjunction with IASB can be seen here.