Český finanční a účetní časopis 2021(3):5-19 | DOI: 10.18267/j.cfuc.562

Business combinations under common control

Adéla Schrecková
Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví, katedra finančního účetnictví a auditingu, nám. W. Churchilla 4, 130 67 Praha 3

This essay deals with business combinations under common control and discusses possible accounting treatments depending on needs of users of financial statements. First, general methods used for business combinations are described, then it comes closer to business combinations under common control underlining their specific characteristics and how these should be treated in financial statements in various situations (e.g. a non-controlling interest involved, a simple reorganisation within a group). In the end, it shortly outlines some of different approaches in various countries to emphasize the need of unification of accounting methods and enhancing the comparability of financial statements when accounting for business combinations with the same economical substance.

Keywords: Business combination; Common control; Acquisition method; Pooling of interest; Non-controling interest; Goodwill
JEL classification: G34, M19, M40

Received: October 14, 2021; Revised: October 14, 2021; Accepted: November 4, 2021; Prepublished online: December 1, 2021; Published: December 3, 2021  Show citation

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Schrecková, A. (2021). Business combinations under common control. Czech Financial and Accounting Journal, 2021(3), 5-19. doi: 10.18267/j.cfuc.562
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