ICAP vide Circular No. 6/2020 (dated June 08, 2020) has requested comments on exposure draft technical release ‘Accounting for Common Control Transactions ’ by July 8, 2020. The aim of the technical release is to improve relevance, reliability and comparability of financial statements with regards common control transactions.

The exposure draft technical release establishes principles and requirements for how the receiving entity:

  • recognizes and measures in its financial statements a business combination under common control (BCUCC) or a group restructuring transaction; and
  • determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of a BCUCC or a group restructuring.

Circular can be accessed on following link:

https://www.icap.net.pk/wp-content/uploads/2020/06/CircularNo6-2020.pdf

https://www.icap.net.pk/wp-content/uploads/2020/06/ED-Technical-Release-BCUCC.pdf

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