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Dialogue with standard setters. Business Combinations under Common Control: Concerns, Criticisms and Strides

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  • Raffaele Fiume
  • Tiziano Onesti
  • Mauro Romano
  • Marco Taliento

Abstract

Although excluded from the scope of IFRS 3, business combinations under common control (BCUCCs) are widespread transactions that take place all over the world in different forms, often as a reorganization or restructuring among related parties. These transactions occur when entities are ultimately - not transiently - controlled by the same party/ies before and after the combination (which is neither a capital market nor an arm?s length transaction and devoid of economic substance: indeed, no change of control is entailed). The scarce and fragmentary literature, not to mention the lack of clear consensus on the topic, contributes to the prevailing concerns on how to account for BCUCCs. In this complex context, the purpose of this work is to assess the possible and various accounting methods and identify the most suitable, accredited and consistent techniques.

Suggested Citation

  • Raffaele Fiume & Tiziano Onesti & Mauro Romano & Marco Taliento, 2015. "Dialogue with standard setters. Business Combinations under Common Control: Concerns, Criticisms and Strides," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2015(1), pages 107-126.
    • Handle: RePEc:fan:frfrfr:v:html10.3280/fr2015-001005
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    References listed on IDEAS

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    1. Tiziano Onesti & Mario Romano & Marco Taliento, 2015. "Acquisition-type or merger-type accounting? Further insights on transactions involving businesses governed by the same party(-ies)," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2015(2), pages 117-137.
    2. Magdalena Janowicz, 2021. "Business Combination Under Common Control (BCUCC) - What Kind of Disclosure is Enough? The Polish Experience," European Research Studies Journal, European Research Studies Journal, vol. 0(2B), pages 1004-1013.
    3. Elisa Roncagliolo & Francesco Avallone, 2021. "The complexity in measuring M&A performance: Is a multi-dimensional approach enough?," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2021(1), pages 89-117.

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