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3 Dec. 2020

Invitation to Comment 42 Business Combinations under Common Control

Comments are invited on possible new accounting requirements for business combinations under common control – where mergers and acquisitions occur involving entities within the same group. The aim of the possible requirements would be to reduce diversity in practice and to improve transparency and comparability in reporting these transactions.
Business combinations under common control are currently excluded from the scope of AASB 3 Business Combinations.

The Discussion Paper sets out the IASB’s view that companies should provide similar information about similar business combinations when the benefits of that information to investors outweigh the costs of providing it. Specifically, the Board is suggesting that fair-value information should be provided when a business combination under common control affects shareholders outside the group. That suggestion is consistent with the existing requirements in AASB 3 for mergers and acquisitions between unrelated companies. In all other cases, it is suggested that book-value information should be provided using a single approach to be specified in IFRS Standards.

Please have your say and send your comments to the AASB by 17 July 2021 via
the AASB website, LinkedIn or email to