This paper, while summarising the background and context of the IASB’s project on Business combinations under common control (BCUCCs), aims to demonstrate that the criterion for identifying the accounting treatment of BCUCCs proposed by the Discussion paper issued by the IASB in November 2020, while having undoubted merits, has significant critical issues that need to be solved. In this paper some solutions are proposed to overcome these critical issues, in the hope that this important IASB project will come to completion with the issuance of an IFRS that clears the field of the diversities found in practice in the accounting treatment of BCUCCs.
KEYWORDS: Business, Business combination, Business combination under common control, Acquisition method, Predecessor basis method, Book-value method, Pooling of interests method, Merger accounting, Transferring company, Receiving company, Non-controlling shareholders, Controlling shareholders, Parent company, Consolidated financial statement
