Naslov
Business combinations of subjects under common control

Autori
Mijoč, Ivo

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
INTERNATIONAL SCIENTIFIC SYMPOSIUM REGION, ENTREPRENEURSHIP, DEVELOPMENT / Leko Šimić, Mirna ; Crnković, Boris - Osijek : Ekonomski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2020, 1119-1134

ISBN
9771848955005

Skup
9th International Scientific Symposium Region, Entrepreneurship, Development 2020 (RED 2020)

Mjesto i datum
Osijek, Hrvatska, 04.06.2020. - 05.06.2020

Vrsta sudjelovanja
Ostalo

Vrsta recenzije
Recenziran

Ključne riječi
common control, business combinations, taxation, acquisition.

Sažetak
This paper investigates two related topics – the terminological problem of defining business combinations, and the operations of companies within groups that carry special challenges, which is especially true for transactions of status changes. In principle, the problem is of terminological nature. Legislation includes terms such as business transfer, status change, business combination and company transformation. The aim of the paper is to determine whether this is applicable on status changes within the group, where there is no acquisition fee, or it is different from fair value. No less challenging is the question of the very reasons for the status change. Recognizing the importance of this topic, i.e. transactions under common control (TUCC), in 2007, the IASB included the topic of business combinations of companies under common control (BCUCC) in its plan. Although already 13 years have passed since the first plan, there is still no final solution in the form of standards. Methodologically, these transactions are not challenging only from an accounting standpoint, but are examined in relation to financial reporting and analysed from a tax perspective, especially as status changes of companies involving multiple tax jurisdictions are particularly challenging. The expected results show that, essentially, a company needs to prove that any one of the above procedures is carried out solely for justified economic reasons (restructuring or rationalisation) and in no way because of tax abuse and aggressive tax planning. In the final part, the paper discusses the future and appropriateness of the accounting model for business combinations under common control (BCUCC) as a challenge in finding an adequate model for this phenomenon. However, it is to be assumed that the European Union Directive relating to the common system of taxation in the case of status changes is an example of a model for solving the problem in international environment.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

Napomena
Both, Organizing and Programme, Committees deeply miss our live
meeting, discussions and social events that are disabled due to
corona crisis

POVEZANOST RADA