General conception accounting for legal merger

Obecné koncepce pro účetnictví fúzí

Hana Vomáčková

Český finanční a účetní časopis, 2006, vol. 2006, issue 2, 95-115

Abstract: The consensus in the merges idea conceptions is necessary to increase fairness (trustiness) and comparability of accounting information about business combinations. In the first case of merging independent companies and their accounting entities we can suppose, that the basic idea of merge is "purchase". The stronger entity is "purchasing" the net assets of the "ending" entity for the exchange of shares or owners share. In the second case of merging independent companies the new entity is "purchasing" the net assets of the all merged companies for the issued shares or owners share. In the situation that dependent companies are merging, this case is only following-up to previous acquisition and should be solved as consolidation in the "next accounting periods". We should not define it as a new transaction - not dependent of the previous (first) acquisition. The accounting methods useable for the merges should be based on these ideas and these methods described above should be defined in the accounting standards for accounting of business combinations.

Keywords: Business combinations; Acquisition; Merger; Goodwill; Consolidation; Purchase method; Pooling and interests method; New entity method; Fresh start method; Podnikové kombinace; Akvizice; Fúze; Konsolidace; Metoda koupě; Metoda poolu; Metoda nové jednotky (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2006
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DOI: 10.18267/j.cfuc.153

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