Reverse Acquisitions Within the Scope of IFRS 3 Business Combinations

Olcay Akçin and İlker Kıymetli Şen
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Olcay Akçin: Istanbul Commerce University
İlker Kıymetli Şen: Istanbul Commerce University

Business and Economics Research Journal, 2018, vol. 9, issue 1, 213-233

Abstract: Because of tough competition conditions in global economy, technological developments, changes in consumer preferences, economic crisis, changes in law and number of other reasons, companies choose business combinations in order to reduce the business risks, increase the performance, efficiency and competitive power, expand into new markets and reduce the costs. Companies reporting in accordance with International Financial Reporting Standards apply IFRS 3 Business Combinations while accounting of business combinations. Transactions defined as "Reverse Acquisitions" in the literature are discussed in a separate chapter within the standard. As per the standard, accounting treatments for reverse acquisitions differ in many ways from regular business combinations.The purpose of this study is to explain the theoretical and practical accounting treatment differences between regular business combinations and reverse acquisitions.

Keywords: IFRS; Business Combinations; Reverse Acquisition; Fair Value; Consolidation (search for similar items in EconPapers)
JEL-codes: M40 M41 M42 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ris:buecrj:0323

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