| Summary: | 碩士 === 國立臺灣大學 === 會計與管理決策組 === 103 === Business combinations under common control (BCUCC) are excluded from the scope of from IFRS 3. Absence of specific guidance on accounting for BCUCC has led to diversity in practice.
To increase the comparability and consistency of the accounting treatment, IASB identified BCUCC as a priority research project. The project included the application of the relevant accounting method, or methods, of accounting for BCUCC and group restructurings in consolidated financial statements.
Applying different accounting treatment to different types of BCUCC will involves the following disadvantages:
(i) Would increase accounting complexity；
(ii) Would create the need to define those populations；and
(iii) Could create an opportunity for structuring transactions with the aim of achieving the desired accounting outcome.
IFRS Foundation Staff are leaning towards the use of predecessor method for all types of BCUCC. Additional information, such as fair value information, could be provided via disclosure.
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