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Hi,
a. Bank A acquired Bank B on February 1st, 2023, resulting in Bank B's legal dissolution. Bank A began operating B's business on the same date.
b. Bank A had a wholly-owned subsidiary company, X, while Bank B also had a subsidiary, Y.
c. Y became a subsidiary of Bank A upon the acquisition of Bank B.
d. The financial year-end for both companies is March 31st.
e. Six months after the initial acquisition, Company X acquired Company Y as mandated by the local regulatory body.

My question on the above issue is:
1) Is this acquisition of Y by X considered a common control business combination?
2) How should this transaction be accounted for - using the acquisition method or book value method?
3) Which IFRS guides the treatment of this transaction?

yes
up to you
none

The best resource IMO: https://www.ifrs.org/content/dam/ifrs/p ... r-2020.pdf

Hello,

Thank you for your previous reply.

I have a follow-up question. As per IAS 1, what should be disclosed in the notes to the accounts of Company Y (the acquired company) regarding the going concern assumption as of the acquisition date?

Company X is acquiring Company Y, assuming all its assets and liabilities. Company Y has ceased operations on the acquisition date and will be closed upon completion of the audit.

Thank you.

You should disclose the following as per IAS 1.25:
- the fact that the company is no longer going concern
- the basis on which it prepared the financial statements
- the reason why the entity is not regarded as a going concern