Accounting for mergers and acquisitions within the same group

Virtual Event with IASB Vice-Chair, Sue Lloyd

Mergers and acquisitions within the same group occur on a regular basis in New Zealand as part of corporate group restructures. Currently, IFRS Standards do not specify how the restructure of entities within the same group should be accounted for.

Consequently, entities are currently accounting for these transactions in different ways, leading to inconsistent reporting across the for-profit sector. This presents challenges for users of financial statements when assessing the impact of the merger or acquisition. This assessment is of particular importance for investors who hold a minority interest in an entity.

Potential changes ahead

In response to these challenges, the IASB has recently published a Discussion Paper (DP).  This DP explores options for introducing new reporting requirements for mergers and acquisitions within the same group — referred to as Business Combinations Under Common Control (BCUCC).   

Have a look

This IASB project will likely result in the introduction of new mandatory reporting requirements on BCUCC for for-profit entities in New Zealand. Therefore, your feedback on this DP is important.

This topic will be of interest to:

• Accountants and auditors
• Group restructuring consultants
• CFOs involved in BCUCC transactions
• Investors
• Financial analysts

Virtual event

The XRB is currently seeking views to help inform our feedback to the IASB on the DP.  We held an interactive virtual event on Tuesday 13 April 2021. This was an opportunity to hear directly from the IASB Vice-Chair, Sue Lloyd, and IASB Project Lead, Yulia Feygina, about this DP and share views.

[This event has already taken place]

View the presentation slides

Providing your comments

Please send us your comments on the IASB Discussion Paper by 1 June 2021. Your comments will inform our submission to the IASB later this year.

Information on how to make a submission