EFRAG Secretariat Briefing: Business Transfers under Common Control

​​​EFRAG Secretariat has issued a Briefing ​as part of EFRAG strategy to stimulate debate on the IASB discussions on how to account for ​business combinations under common control. The views expressed in this Briefing are tentative and reflect the EFRAG Secretariat’s understanding of how the proposals included in the IASB’s discussion paper Business Combinations under Common Control would be applied.

​In November 2020, the IASB ​issued the ​Discussion Paper DP/2020/2 ​Business Combinations under Common Control ('the DP'). ​The DP explores possible reporting requirements for the transfer of businesses under common control in the financial statements of the receiving company.

To help constituents ​​understand the DP and ​participate in the​​ discussion, EFRAG Secretariat has ​considered how the ​​IASB’s proposals would apply to specific transfer of businesses under common control, in particular those that raise questions about the application of IFRS Standards. Informed debate on the DP will help EFRAG to assess the impact of the IASB proposals and their costs and benefits.

Due to the nature of the Briefing, the EFRAG Secretariat has not included questions to constituents. However, constituents may express their views on the topic when responding to the EFRAG draft comment letter​.​

The Briefing is available here​.

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