IASB's tentative decisions on measurement approaches of business combinations under common control after discussion

IFRS 3 Business combinations doesn’t apply to business combinations under common control. The current IFRS doesn’t include any guideline for such kind of transaction as well, however there is difference in application of the standards relevant to the transaction. The IASB is exploring ways to improve the reporting on combinations of businesses under common control. On January 2020, the Board has completed its discussions of measurement approaches and disclosures and is preparing a discussion paper setting out its preliminary views on reporting these transactions. The Board plans to publish the document in the first half of 2020.

The Board’s tentative decisions on measurement approaches are as follows,

Illustration of the Board’s tentative decisions on when the acquisition method and the predecessor approach would apply