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right hello everybody and welcome to this live webinar on business combinations under common control now today we're going to briefly recap the discussion paper issued by the isp and then give an overview of the initial feedback received my name is bruce mckenzie and i'm an isp board member i'm joined today by yulia fagina and richard brown from the isb technical staff now to start off with just a few housekeeping remarks if you'd like to know more about the project the discussion paper itself and all the supporting education materials are available on our website now as with all our presentations any views expressed today are the views of the presenters and may not necessarily be shared by the board or the ifrs foundation now during the session you will have the opportunity to ask questions so please submit your questions in the q a section on your screen and we'll pick these up as we go along and at the end of the presentation we may not be able to answer every question asked but we will attempt to group any similar questions and try and address them all in one go now the three main topics we're going to cover today firstly we're going to look at which method to apply to a business combination under common control secondly how to apply the acquisition method and thirdly how to apply the book value method now with that i hand it over to richard to remind us of why the board is doing this project over to you rich thanks bruce um so today business combinations are covered by ifrs standards and reported using the acquisition method which provides fair value information about business combinations but business combinations under common control are not addressed by ifrs standards so in practice receiving companies use either the acquisition method or a book value method which provides book value information there isn't a single book value method specified in ifrs standards and so there's actually a range of different book value methods that are used in practice today the board's objective for this project is to ensure that useful information will be provided about business combinations under common control but without imposing unnecessary costs on preparers and we'll see later in the presentation how the board is suggesting to achieve that the diagram that's on screen shows the type of transaction that we're talking about here today so itco acquires a software code from a private code both itco and software code are controlled by holding code before and after the transaction so they are under common control the project addresses reporting by the receiving company in a business combination under common control which on in our example is iteco the project's not looking to address the reporting by other parties for example the controlling party holding code receiving companies can be listed or unlisted they can be wholly owned or they can have um non-controlling shareholders as well...