Logo Image

Investor Survey


Mergers and acquisitions (M&A) are common in today's corporate world and can take the form of, for example, internal group restructurings (i.e. M&As under a common controlling party) or third party acquisitions (i.e. M&As with third parties). 

At present, there could be a distinction between accounting for M&As under common control and accounting for M&As with third parties.  This is because there is usually no question that there is underlying substance to acquisitions with third parties.  The transaction price in an M&A with a third party typically represents the fair market value of the acquired business.  However, an M&A under common control might arguably be different, because:

  • they could be directed transactions by the common controlling party;

  • the purpose of such transactions could be different from the purpose of M&As with third parties; and

  • the transaction price may not represent the fair value of the acquired business.

M&As with third parties are accounted for and reported at fair market values. In contrast, M&As under common control can be accounted for at either fair market values or historical carrying values. 

The Standard Setting Department of the Hong Kong Institute of CPAs and staff of the Organismo Italiano di Contabilità are conducting a survey to understand whether investors evaluate the underlying substance of M&As under common control and M&As with third parties differently.

The findings of this survey will form a basis for whether all M&As should be accounted for in the same way.

Question 1:
Where are you based?

Check any that apply
Question 2:
Are you a:

Check any that apply
Question 3:
Do you think that the underlying substance of M&As under common control is always different from M&As with third parties?

Check any that apply