CERTYNEX IFRS ACADEMY

Two companies, Nacre SA and Opale SA, are owned in equal parts by Mr Arnaud and Ms Bellec, who exercise their control together under a contractual arrangement. Nacre and Opale merge. Case assumption: before and after the transaction this group of individuals controls the whole, and that control is not transitory. What follows under IFRS 3?

The group of individuals acting together can be the controlling party: the combination is under common control and outside the scope of IFRS 3.

Common control is absent, because the controlling party must be a single legal entity and not a group of natural persons bound by a contractual arrangement.

The combination falls within the scope of IFRS 3, because two natural persons cannot be a controlling party.

The combination is under common control, but the standard sets a minimum duration beyond which control stops being transitory.