The IASB issued DP in which it identifies two methods of accounting for business combinations under common control by a receiving entity.
BCUCC are combinations in which all of the combining entities are ultimately controlled by the same party, both before and after the combination. The Discussion Paper (the DP) proposes to clarify that the acquisition method (as described in IFRS 3 Business Combinations) should generally be applied if the BCUCC affects non-controlling shareholders of the receiving entity, but that a single book-value method should be applied to all other BCUCC. The scope of transactions considered in the project is limited only to those in which a business (as defined in IFRS 3) is transferred, and not, for example, the transfer of assets.
