Acta Univ. Agric. Silvic. Mendelianae Brun. 2008, 56, 13-24
Published online 2014-10-17

IFRS and US GAAP convergence in the area of business combination

Hana Bohušová, Patrik Svoboda

Ústav účetnictví a daní, Mendelova zemědělská a lesnická univerzita v Brně, Zemědělská, 613 00 Brno, Česká republika

The IASB project "Business Combinations" started in 2001. The increase of financial statements quality and international harmonization of business combinations recording were main objectives of this project. The project was divided into two phases. IFRS 3 (2004) Business Combinations" which replaced former IAS 22 was the result of the first phase. Partial harmonization of recording and financial reporting of business combination in Europe and in the USA was the main objective of IFRS 3 (2004). IFRS 3 (2004) is based on SFAS 141 (2001). SFAS 141 (2001) was developed in 2001 and replaced APB (Accounting Principles Board) Opinion No. 16 Business Combinations and SFAS 38. There is the pooling interest method forbidden and only the purchase method is allowed for all kinds of business combinations. Based on the comparison of both methodical approaches to business combinations are demonstrated reasons for refusing of pooling interest method. The second phase is aimed at purchase method application and new methodical approaches to business combination recording and it is the objective of the conclusion of this paper.


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