The IASB issued a discussion paper in November 2020 on Business combinations under common control
These are typically combinations in which all of the combining companies/businesses are ultimately controlled by the same party/(ies) before and after the combination, which have been specifically excluded from IFRS to date.
The lack of guidance in current IFRS standards as to how to account for and report on these combinations in the receiving entity’s financial statements has resulted in diversity in practice. The board aims to explore possible reporting requirements that will reduce this diversity and provide the necessary information about these combinations.
The paper issued by the board discusses their preliminary views on how these combinations should be treated with regards to the scope and objective, selection of the measurement method and the necessary disclosure requirements. The Board’s preliminary view is that the acquisition method with a cost-benefit trade-off should be applied if non-controlling shareholders or the receiving entity as affected and a book-value method must be applied to all others.
The comment letter period is open until 1 September 2021.
For more detail refer to our discussion paper and https://www.ifrs.org/projects/work-plan/business-combinations-under-common-control/