EFRAG publishes comment letter in response to IASB's Discussion Paper DP/2020/2 Business Combinations under Common Control
15 October 2021
EFRAG has published its comment letter in response to the IASB's Discussion Paper DP/2020/2 Business Combinations under Common Control (BCUCC). In the comment letter, EFRAG has welcomed the Discussion Paper and expressed cautious support for the proposed approach to select the measurement method.
EFRAG has suggested that the scope of the project should be extended to include how to measure investments in subsidiaries in the separate financial statements.
When applying a book-value method, EFRAG has proposed two accounting policy options to allow the use of the carrying amounts in the consolidated financial statements of the transferred company’s controlling party and to provide pre-combination information retrospectively.
EFRAG has made a number of other recommendations to improve the IASB’s proposals.
The comment letter may be accessed here.