Study on Accounting Regulation for Business Combinations

Running a business involves continuous growth. Such growth can be organic, stemming from resources created internally in the enterprise. However, in many cases an external development strategy is adopted, based on acquisition of other entities. Suc...

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Main Author:	Soprych, Maciej
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	ESCROW CONTINGENT LIABILITIES HOLDING INTANGIBLE ASSET EQUITY INSTRUMENT LIABILITY BROKERAGE BANKRUPTCY PROCEDURE EQUIPMENT ACCOUNTING INTANGIBLE ASSETS LIQUIDATION GOVERNMENT GRANT DEED ACQUISITION DATE CASH INFLOW STOCK VALUATION INTEREST INTEREST RATE PROPERTY RIGHTS OPTION EXCHANGE STOCK MARKET DISCOUNT RATE SUPERVISORY BOARD TAX BENEFIT BANK ACCOUNT REVENUES CAPITAL STRUCTURE TAX BENEFITS FINANCIAL STATEMENTS LOAN FINANCIAL STATEMENT DISCOUNT REPAYMENT PERIOD WARRANTS TAX RULES TAX INCOME TAX BANKRUPTCY BENEFICIARIES CREDITORS INTERNATIONAL BANK CASH FLOWS INSTRUMENTS MARKET PARTICIPANTS LEGAL SYSTEMS DERIVATIVES COMMERCIAL CODE MONETARY ASSET SETTLEMENT DATE LIQUIDATIONS ECONOMIC TRANSACTIONS CONTRACTS TRADING OPTIONS MARKETS LIMITED PARTNERSHIPS DEBT RETURN SETTLEMENT PUBLIC FINANCE PUBLIC MARKET SEPARATE ASSET FIXED ASSET LOANS INVENTORIES DUE DILIGENCE FINANCE FUTURE CASH FLOWS MARKET PRICE TAXES CONTINGENT LIABILITY EXPENDITURE TRANSACTIONS IPO INTERNATIONAL STANDARDS PREPAYMENTS EQUITY INCOME TAXES TRANSACTION INVESTORS VALUE OF ASSETS INVESTMENT LOAN PAYMENT OBLIGATION DERIVATIVE MARKET CONDITIONS MARKET PRICES FUTURE MOBILE PHONE RETURNS ACTIVE MARKET MONETARY ASSETS FINANCIAL INSTRUMENTS CONTRACT CAPITALIZATION REPAYMENT EXPENDITURES DEBT SECURITIES AMORTIZATION PROPERTY FAIR VALUE ISSUANCE PROPERTIES SHARES BALANCE SHEET MARKET MINORITY SHAREHOLDERS MARKET VALUE LEASE AGREEMENTS INTANGIBLES SECURITIES LEASE AGREEMENT COMMERCIAL LAW ACCOUNTING STANDARD BANK ACCOUNTS SINGLE ASSETS SHAREHOLDERS AMORTIZATION METHOD INSURANCE RENT PAYMENTS EQUITY INSTRUMENTS INTERESTS GOODS INVESTOR FIXED ASSETS SECURITY INTANGIBLE LEGAL SYSTEM ACCOUNTING STANDARDS LOSS STATEMENT STOCK EXCHANGE INVESTMENT SHARE CIVIL LAW BANKRUPTCIES VALUATION TECHNIQUES FINANCIAL INFORMATION DISCOUNTS TANGIBLE ASSETS INTERNATIONAL STANDARD FINANCIAL ASSETS REVENUE PROFIT WAREHOUSES INVESTMENTS INTELLECTUAL PROPERTY JOINT STOCK COMPANIES SHAREHOLDER MARKET PARTICIPANT INSTRUMENT BANKING LAW PROFITS LIMITED LIABILITY LIABILITIES ARREARS JOINT STOCK COMPANY GUARANTEE LEGAL RIGHTS CONSUMER PROTECTION CASH FLOW SWAP
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26440814/study-accounting-regulation-business-combinations http://hdl.handle.net/10986/24803

id	okr-10986-24803
recordtype	oai_dc
spelling	okr-10986-248032021-04-23T14:04:23Z Study on Accounting Regulation for Business Combinations Soprych, Maciej ESCROW CONTINGENT LIABILITIES HOLDING INTANGIBLE ASSET EQUITY INSTRUMENT LIABILITY BROKERAGE BANKRUPTCY PROCEDURE EQUIPMENT ACCOUNTING INTANGIBLE ASSETS LIQUIDATION GOVERNMENT GRANT DEED ACQUISITION DATE CASH INFLOW STOCK VALUATION INTEREST INTEREST RATE PROPERTY RIGHTS OPTION EXCHANGE STOCK MARKET DISCOUNT RATE SUPERVISORY BOARD TAX BENEFIT BANK ACCOUNT REVENUES CAPITAL STRUCTURE TAX BENEFITS FINANCIAL STATEMENTS LOAN FINANCIAL STATEMENT DISCOUNT REPAYMENT PERIOD WARRANTS TAX RULES TAX INCOME TAX BANKRUPTCY BENEFICIARIES CREDITORS INTERNATIONAL BANK CASH FLOWS INSTRUMENTS MARKET PARTICIPANTS LEGAL SYSTEMS DERIVATIVES COMMERCIAL CODE MONETARY ASSET SETTLEMENT DATE LIQUIDATIONS ECONOMIC TRANSACTIONS CONTRACTS TRADING OPTIONS MARKETS LIMITED PARTNERSHIPS DEBT RETURN SETTLEMENT PUBLIC FINANCE PUBLIC MARKET SEPARATE ASSET FIXED ASSET LOANS INVENTORIES DUE DILIGENCE FINANCE FUTURE CASH FLOWS MARKET PRICE TAXES CONTINGENT LIABILITY EXPENDITURE TRANSACTIONS IPO INTERNATIONAL STANDARDS PREPAYMENTS EQUITY INCOME TAXES TRANSACTION INVESTORS VALUE OF ASSETS INVESTMENT LOAN PAYMENT OBLIGATION DERIVATIVE MARKET CONDITIONS MARKET PRICES FUTURE MOBILE PHONE RETURNS ACTIVE MARKET MONETARY ASSETS FINANCIAL INSTRUMENTS CONTRACT CAPITALIZATION REPAYMENT EXPENDITURES DEBT SECURITIES AMORTIZATION PROPERTY FAIR VALUE ISSUANCE PROPERTIES SHARES BALANCE SHEET MARKET MINORITY SHAREHOLDERS MARKET VALUE LEASE AGREEMENTS INTANGIBLES SECURITIES LEASE AGREEMENT COMMERCIAL LAW ACCOUNTING STANDARD BANK ACCOUNTS SINGLE ASSETS SHAREHOLDERS AMORTIZATION METHOD INSURANCE RENT PAYMENTS EQUITY INSTRUMENTS INTERESTS GOODS INVESTOR FIXED ASSETS SECURITY INTANGIBLE LEGAL SYSTEM ACCOUNTING STANDARDS LOSS STATEMENT STOCK EXCHANGE INVESTMENT SHARE CIVIL LAW BANKRUPTCIES VALUATION TECHNIQUES FINANCIAL INFORMATION DISCOUNTS TANGIBLE ASSETS INTERNATIONAL STANDARD FINANCIAL ASSETS REVENUE PROFIT WAREHOUSES INVESTMENTS INTELLECTUAL PROPERTY JOINT STOCK COMPANIES SHAREHOLDER MARKET PARTICIPANT INSTRUMENT BANKING LAW PROFITS LIMITED LIABILITY LIABILITIES ARREARS JOINT STOCK COMPANY GUARANTEE LEGAL RIGHTS CONSUMER PROTECTION CASH FLOW SWAP Running a business involves continuous growth. Such growth can be organic, stemming from resources created internally in the enterprise. However, in many cases an external development strategy is adopted, based on acquisition of other entities. Such an acquisition may involve creation of a capital group, within which each of the companies maintains its separate legal personality. However, if a capital group is not the optimal form for the given business activity, acquisition of another entity may take form of a business combination. In such case, assets and liabilities of the acquire are directly incorporated into the books of the acquirer. The overriding principle of accounting regulation is primacy of economic substance over legal format. Pursuant to this principle, economic transactions must be recorded in the accounting records in accordance with their economic nature1. In order to determine properly the economic nature of a business combination, an analysis must be performed of economic impacts of such a combination. Economic consequences for merging entities are described in the provisions of commercial law. 2016-08-04T16:06:46Z 2016-08-04T16:06:46Z 2014-01 Working Paper http://documents.worldbank.org/curated/en/2016/06/26440814/study-accounting-regulation-business-combinations http://hdl.handle.net/10986/24803 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper Poland
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ESCROW CONTINGENT LIABILITIES HOLDING INTANGIBLE ASSET EQUITY INSTRUMENT LIABILITY BROKERAGE BANKRUPTCY PROCEDURE EQUIPMENT ACCOUNTING INTANGIBLE ASSETS LIQUIDATION GOVERNMENT GRANT DEED ACQUISITION DATE CASH INFLOW STOCK VALUATION INTEREST INTEREST RATE PROPERTY RIGHTS OPTION EXCHANGE STOCK MARKET DISCOUNT RATE SUPERVISORY BOARD TAX BENEFIT BANK ACCOUNT REVENUES CAPITAL STRUCTURE TAX BENEFITS FINANCIAL STATEMENTS LOAN FINANCIAL STATEMENT DISCOUNT REPAYMENT PERIOD WARRANTS TAX RULES TAX INCOME TAX BANKRUPTCY BENEFICIARIES CREDITORS INTERNATIONAL BANK CASH FLOWS INSTRUMENTS MARKET PARTICIPANTS LEGAL SYSTEMS DERIVATIVES COMMERCIAL CODE MONETARY ASSET SETTLEMENT DATE LIQUIDATIONS ECONOMIC TRANSACTIONS CONTRACTS TRADING OPTIONS MARKETS LIMITED PARTNERSHIPS DEBT RETURN SETTLEMENT PUBLIC FINANCE PUBLIC MARKET SEPARATE ASSET FIXED ASSET LOANS INVENTORIES DUE DILIGENCE FINANCE FUTURE CASH FLOWS MARKET PRICE TAXES CONTINGENT LIABILITY EXPENDITURE TRANSACTIONS IPO INTERNATIONAL STANDARDS PREPAYMENTS EQUITY INCOME TAXES TRANSACTION INVESTORS VALUE OF ASSETS INVESTMENT LOAN PAYMENT OBLIGATION DERIVATIVE MARKET CONDITIONS MARKET PRICES FUTURE MOBILE PHONE RETURNS ACTIVE MARKET MONETARY ASSETS FINANCIAL INSTRUMENTS CONTRACT CAPITALIZATION REPAYMENT EXPENDITURES DEBT SECURITIES AMORTIZATION PROPERTY FAIR VALUE ISSUANCE PROPERTIES SHARES BALANCE SHEET MARKET MINORITY SHAREHOLDERS MARKET VALUE LEASE AGREEMENTS INTANGIBLES SECURITIES LEASE AGREEMENT COMMERCIAL LAW ACCOUNTING STANDARD BANK ACCOUNTS SINGLE ASSETS SHAREHOLDERS AMORTIZATION METHOD INSURANCE RENT PAYMENTS EQUITY INSTRUMENTS INTERESTS GOODS INVESTOR FIXED ASSETS SECURITY INTANGIBLE LEGAL SYSTEM ACCOUNTING STANDARDS LOSS STATEMENT STOCK EXCHANGE INVESTMENT SHARE CIVIL LAW BANKRUPTCIES VALUATION TECHNIQUES FINANCIAL INFORMATION DISCOUNTS TANGIBLE ASSETS INTERNATIONAL STANDARD FINANCIAL ASSETS REVENUE PROFIT WAREHOUSES INVESTMENTS INTELLECTUAL PROPERTY JOINT STOCK COMPANIES SHAREHOLDER MARKET PARTICIPANT INSTRUMENT BANKING LAW PROFITS LIMITED LIABILITY LIABILITIES ARREARS JOINT STOCK COMPANY GUARANTEE LEGAL RIGHTS CONSUMER PROTECTION CASH FLOW SWAP
spellingShingle	ESCROW CONTINGENT LIABILITIES HOLDING INTANGIBLE ASSET EQUITY INSTRUMENT LIABILITY BROKERAGE BANKRUPTCY PROCEDURE EQUIPMENT ACCOUNTING INTANGIBLE ASSETS LIQUIDATION GOVERNMENT GRANT DEED ACQUISITION DATE CASH INFLOW STOCK VALUATION INTEREST INTEREST RATE PROPERTY RIGHTS OPTION EXCHANGE STOCK MARKET DISCOUNT RATE SUPERVISORY BOARD TAX BENEFIT BANK ACCOUNT REVENUES CAPITAL STRUCTURE TAX BENEFITS FINANCIAL STATEMENTS LOAN FINANCIAL STATEMENT DISCOUNT REPAYMENT PERIOD WARRANTS TAX RULES TAX INCOME TAX BANKRUPTCY BENEFICIARIES CREDITORS INTERNATIONAL BANK CASH FLOWS INSTRUMENTS MARKET PARTICIPANTS LEGAL SYSTEMS DERIVATIVES COMMERCIAL CODE MONETARY ASSET SETTLEMENT DATE LIQUIDATIONS ECONOMIC TRANSACTIONS CONTRACTS TRADING OPTIONS MARKETS LIMITED PARTNERSHIPS DEBT RETURN SETTLEMENT PUBLIC FINANCE PUBLIC MARKET SEPARATE ASSET FIXED ASSET LOANS INVENTORIES DUE DILIGENCE FINANCE FUTURE CASH FLOWS MARKET PRICE TAXES CONTINGENT LIABILITY EXPENDITURE TRANSACTIONS IPO INTERNATIONAL STANDARDS PREPAYMENTS EQUITY INCOME TAXES TRANSACTION INVESTORS VALUE OF ASSETS INVESTMENT LOAN PAYMENT OBLIGATION DERIVATIVE MARKET CONDITIONS MARKET PRICES FUTURE MOBILE PHONE RETURNS ACTIVE MARKET MONETARY ASSETS FINANCIAL INSTRUMENTS CONTRACT CAPITALIZATION REPAYMENT EXPENDITURES DEBT SECURITIES AMORTIZATION PROPERTY FAIR VALUE ISSUANCE PROPERTIES SHARES BALANCE SHEET MARKET MINORITY SHAREHOLDERS MARKET VALUE LEASE AGREEMENTS INTANGIBLES SECURITIES LEASE AGREEMENT COMMERCIAL LAW ACCOUNTING STANDARD BANK ACCOUNTS SINGLE ASSETS SHAREHOLDERS AMORTIZATION METHOD INSURANCE RENT PAYMENTS EQUITY INSTRUMENTS INTERESTS GOODS INVESTOR FIXED ASSETS SECURITY INTANGIBLE LEGAL SYSTEM ACCOUNTING STANDARDS LOSS STATEMENT STOCK EXCHANGE INVESTMENT SHARE CIVIL LAW BANKRUPTCIES VALUATION TECHNIQUES FINANCIAL INFORMATION DISCOUNTS TANGIBLE ASSETS INTERNATIONAL STANDARD FINANCIAL ASSETS REVENUE PROFIT WAREHOUSES INVESTMENTS INTELLECTUAL PROPERTY JOINT STOCK COMPANIES SHAREHOLDER MARKET PARTICIPANT INSTRUMENT BANKING LAW PROFITS LIMITED LIABILITY LIABILITIES ARREARS JOINT STOCK COMPANY GUARANTEE LEGAL RIGHTS CONSUMER PROTECTION CASH FLOW SWAP Soprych, Maciej Study on Accounting Regulation for Business Combinations
geographic_facet	Poland
description	Running a business involves continuous growth. Such growth can be organic, stemming from resources created internally in the enterprise. However, in many cases an external development strategy is adopted, based on acquisition of other entities. Such an acquisition may involve creation of a capital group, within which each of the companies maintains its separate legal personality. However, if a capital group is not the optimal form for the given business activity, acquisition of another entity may take form of a business combination. In such case, assets and liabilities of the acquire are directly incorporated into the books of the acquirer. The overriding principle of accounting regulation is primacy of economic substance over legal format. Pursuant to this principle, economic transactions must be recorded in the accounting records in accordance with their economic nature1. In order to determine properly the economic nature of a business combination, an analysis must be performed of economic impacts of such a combination. Economic consequences for merging entities are described in the provisions of commercial law.
format	Working Paper
author	Soprych, Maciej
author_facet	Soprych, Maciej
author_sort	Soprych, Maciej
title	Study on Accounting Regulation for Business Combinations
title_short	Study on Accounting Regulation for Business Combinations
title_full	Study on Accounting Regulation for Business Combinations
title_fullStr	Study on Accounting Regulation for Business Combinations
title_full_unstemmed	Study on Accounting Regulation for Business Combinations
title_sort	study on accounting regulation for business combinations
publisher	World Bank, Washington, DC
publishDate	2016
url	http://documents.worldbank.org/curated/en/2016/06/26440814/study-accounting-regulation-business-combinations http://hdl.handle.net/10986/24803
_version_	1764457541989826560

Study on Accounting Regulation for Business Combinations

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