(2) Subject to subsection (3), an ineligible person or foreign controlled corporation that owns or beneficially owns, as a tenant in common, an interest in a parcel of controlled land is considered to own or beneficially own an interest in that area of controlled land equal to the product obtained by multiplying the area of the parcel by the extent, expressed in a percentage, of the ineligible person’s or foreign controlled corporation’s interest in the parcel of controlled land.

(2) If, as a result of the operation of subsection (1), a foreign controlled corporation acquires an interest in controlled land the taking or acquisition of which would otherwise be prohibited by these Regulations, the foreign controlled corporation shall within three years of becoming a foreign controlled corporation divest itself of the ownership or beneficial ownership of the interest in controlled land so acquired unless it ceases to be a foreign controlled corporation for a continuous period of not less than 12 months during that three-year period.

(3) A change in the contributions of a limited partnership that owns or beneficially owns an interest in controlled land that could not under these Regulations be taken or acquired by an ineligible person or foreign controlled corporation that results in the partnership becoming a foreign controlled limited partnership constitutes an acquisition of that interest in controlled land by the general partners of the foreign controlled limited partnership.

However, given the lack of an arm's-length transaction price, Member States should be allowed to permit intra-group transfers of participating interests, so-called common control transactions, to be accounted for using the pooling of interests method of accounting, in which the book value of shares held in an undertaking included in a consolidation is set off against the corresponding percentage of capital only.

However, given the lack of an arm's-length transaction price, Member States should be allowed to permit intra-group transfers of participating interests, so-called common control transactions, to be accounted for using the pooling of interests method of accounting, in which the book value of shares held in an undertaking included in a consolidation is set off against the corresponding percentage of capital only.

(3) In its Communication on a simplified business environment for companies in the areas of company law, accounting and auditing [26] the Commission identified possible amendments to the Fourth Council Directive 78/660/EEC of 25 July 1978 based on Article 54(3)(g) of the Treaty on the annual accounts of certain types of companies [27], including an option for Member States to exempt micro-entities from the obligation to draw up annual accounts according to that Directive.