M19 - Business Administration: OtherReturn

This article with a topic “Accounting and taxation of mergers in Slovakia” is devoted to the topics that focus on mergers realised in Slovakia, but also on cross border mergers where at least one Slovakian company participates in. The article is focused mainly on tax and accounting aspects with emphasis on legislative changes connected to mergers, mainly in case of amendments of tax law and the Commercial code of Slovak Republic. Part of the article is an analysis of domestic and cross border mergers in Slovakia in period of ten years, since 2012 to 2022.

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.