SOCPA Comments on IFRS Interpretations Committee's Tentative Agenda Decision – Merger between a Pare

SOCPA Comments on IFRS Interpretations Committee's Tentative Agenda Decision – Merger between a Parent and its Subsidiary

The Interpretations Committee of the International Accounting Standards Board (IASB) has published a tentative agenda decision on an inquiry into the accounting approach of a merger of a parent company with its subsidiary. SOCPA, represented by the Accounting Standards Council, agrees that the parent entity controlled the subsidiary before the merger and, consequently, the merger is not a business combination in accordance with IFRS 3. Therefore, IFRS 3 should not be applied. Instead, a parent entity—in its separate financial statements should recognize the assets and liabilities of the subsidiary at their previously recognized carrying amounts.