05 February 2019

Direction of standard emerges for accounting for businesses under common control

The diversity in accounting treatment for transactions involving businesses under common control is in the IASB spotlight. Adam Deller explains what’s happening

  1. How are businesses under common control currently accounted for?

  2. If a subsidiary within a group acquires another entity from outside of the group, how should this be accounted for in the consolidated financial statements?

  3. Which of these describes the alternative treatment to the acquisition method which is currently used in accounting for BCUCC?

  4. Which, if any, of the following situations would be BCUCC? Statement 1 - Entity A acquires entity B from company P, which owns both A and B, or Statement 2 - Entity A acquires entity C from entity B. Company P owns both entities A and B

  5. Which of the following is a proposed method for accounting for BCUCC?

  6. Under the predecessor method, how should an excess of consideration over net asset be recorded?

  7. Which of the following outlines the proposed way forward for the project?

  8. Which, if any, of the following statements is correct? Statement 1 - There is currently no guidance from accounting companies on BCUCC, or Statement 2 - BCUCC only arise when new entities are formed

  9. Why is the current value approach not being proposed across all BCUCC?

  10. Which, if any, of the following statements is/are true? Statement 1 - The IASB is looking at qualitative measures in assessing how significant the NCI is, or Statement 2 - The IASB is looking at quantitative measures in assessing how significant the NCI is

1 Unit

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