Acta Univ. Agric. Silvic. Mendelianae Brun. 2016, 64, 265-274

https://doi.org/10.11118/actaun201664010265
Published online 2016-02-29

Impacts of Newly Acquired Items Within Business Combinations on the Items of the Financial Statements

Jana Gláserová

Department of Accounting and Taxes, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic

This paper is focused on the operations with the company (business combinations). These are those operations that are associated with the formation or dissolution of companies or reorganization of their ownership structure. They are often referred as equity transactions. In the concept of Czech accounting legislation, these are the purchase, sale, investment (deposit) of firms or their parts, and various forms of transformation of enterprises. There are analyzed the accounting practices of recording of these issues under the Czech accounting legislation and International Financial Reporting Standards. Consequently there are identified newly acquired assets and liabilities arising directly in connection with the business combinations. In the conclusion of this paper there are examined the effects of different reporting of newly acquired items in the context of business combinations according to Czech accounting legislation and in accordance with International Financial Reporting Standards on the significant items of balance sheet and profit and loss statement from the material and time point of view.

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