EFRAG and OIC issue Discussion Paper on Business Combinations Under Common Control

The European Financial Reporting Advisory Group (EFRAG) and the Organismo Italiano di Contabilità (OIC) have published Discussion Paper Accounting for Business Combinations under Common Control.

The discussion paper aims to start a debate on business combinations under common control (BCUCC) and how it should be reflected in financial statements. Currently, there are multiple methods used in applying BCUCC, the discussion paper takes the first step to analyse the issues from having multiple methods. The discussion paper also notes that "there is no 'ideal' accounting approach" but goes into three different ways of looking at the problem. Comments are due by 30 April 2012.