EFRAG and the Organismo Italiano di Contabilità published the Feedback Statement, 'Accounting for Business Combinations under Common Control'. The Feedback Statement has been prepared for constituents to consider the analysis of comment letters received, together with EFRAG's and OIC's responses.
EFRAG and the OIC have finalised the feedback statement that they jointly prepared as a result of the comments received on the Discussion Paper, ‘Accounting for Business Combinations under Common Control’, which was published in October 2011. In the public consultation to the Discussion Paper, comment letters were received from commentators in Europe, but also from a wider audience. This input has demonstrated the importance of, and interest in this initiative.
Most of the respondents welcomed the Discussion Paper as an introduction to an important debate; however, they raised a number of concerns and suggested that more work was needed. In this respect, EFRAG and the OIC agreed that further work in their overall project on Business Combinations under Common Control (BCUCC) would encompass the following:
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review real-life examples to see whether they provide a basis for categorising BCUCC into different types of transactions, for which different accounting treatments should apply. If this is successful, indicators of difference in economic substance may be eventually drawn from this exercise; and
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define what a business combination under common control is.
Press release
Feedback statement
© EFRAG - European Financial Reporting Advisory Group
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