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Full-Text Articles in Accounting
Business Combinations Under Common Control (Part 2), Pearl Hock-Neo Tan, Chu Yeong Lim, Tracey Chunqi Zhang
Business Combinations Under Common Control (Part 2), Pearl Hock-Neo Tan, Chu Yeong Lim, Tracey Chunqi Zhang
Research Collection School Of Accountancy
In Part 1 of the article, published in the March issue of this IS Chartered Accountant Journal, we explained the conditions for a BCUCC and the two methods of accounting for BCUCC. We also explained how accounting standards need to address the gap in accounting for the BCUCC from the receiving entity’s perspective. In this Part 2 of the article, we propose a contextual approach in determining the accounting method on BCUCC for the receiving entity (that is, the entity which receives control of the transferred entity from another group entity). We propose that a BCUCC that has commercial substance …