SIC-9
Historical
Business Combinations–Classification either as Acquisitions or Unitings of Interests
Addressed how to classify a business combination as an acquisition or a uniting of interests (pooling of interests). Superseded in 2004 by IFRS 3.
Historical Reference
SIC-9 was superseded in March 2004 when the IASB issued IFRS 3 Business Combinations, which abolished the uniting-of-interests method and required the acquisition method for all business combinations.
This page is retained for historical and comparative reference. Entities should refer to the current standard that superseded this interpretation for authoritative guidance.
Current Standard
IFRS 3 Business Combinations 1
What SIC-9 Addressed (Historical)
What SIC-9 addressed
SIC-9 addressed how to classify a business combination as either an acquisition or a uniting of interests (then often called pooling of interests). It provided criteria for determining whether a transaction represented a true uniting of interests or, in substance, an acquisition of one entity by another.
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The Conclusion It Reached (Historical)
The conclusion it reached
SIC-9 concluded that a business combination should be classified as a uniting of interests only when it met strict criteria–primarily that the combination involved entities of similar size and that the shareholders of the combining entities shared control of the combined entity after the transaction. In all other cases, the combination should be treated as an acquisition, with one entity identified as the acquirer.
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Where This Guidance Lives Today
Where this guidance lives today
Superseded byIFRS 3 Business Combinations
Why withdrawnIFRS 3 abolished the uniting-of-interests method and required acquisition method for all business combinations
Current statusSuperseded
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Glossary
Acquisition method
A method of accounting for a business combination where the acquirer measures the identifiable assets acquired and liabilities assumed at their acquisition-date fair values.
Pooling of interests
A former method of accounting for business combinations where the combining entities were combined as if they had always been a single combined entity, without identifying an acquirer.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows
History & Development
Jan-1998
In January 1998 the Standing Interpretations Committee issued SIC-9 Business Combinations–Classification either as Acquisitions or Unitings of Interests.
Apr-2001
In April 2001 the International Accounting Standards Board adopted SIC-9.
Minor consequential amendment to SIC-9
Mar-2004
In March 2004 the Board issued IFRS 3 Business Combinations which superseded SIC-9.
Superseded by IFRS 3