Common control transaction - IFRS 3

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Yousaf
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Joined: 17 Aug 2022, 08:58

Common control transaction - IFRS 3

Post by Yousaf »

Hi,

Hope you are enjoying good health and spirit.

Question is that:

A company A has acquired 90 % shareholding of company B.

Company A and B, both shareholder are same people. Borad of directors are also same. Are this acquisition out of scop of IFRS 3 ? Are these transactions are common control transactions ?
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Marek Muc
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Re: Common control transaction - IFRS 3

Post by Marek Muc »

what are your doubts here? I mean, what could indicate that this is *not* a common control transaction despite the fact that shareholders of both entities are the same?
JRSB
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Re: Common control transaction - IFRS 3

Post by JRSB »

you could still use ifrs 3 if you want
Yousaf
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Joined: 17 Aug 2022, 08:58

Re: Common control transaction - IFRS 3

Post by Yousaf »

I have doubt, only merger or restructuring are common control transactions.

I have not deal such kind of transaction in my work experience.
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Marek Muc
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Re: Common control transaction - IFRS 3

Post by Marek Muc »

yes, it's a business combination under common control and thus scoped out of IFRS 3

read more: https://cdn.ifrs.org/content/dam/ifrs/p ... .pdf?la=en
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