Tax Aspects of Mergers and Cross-Border Mergers

Žárová, Marcela; Skálová, Jana

doi:10.18267/j.efaj.123

Cited by 4 publications

(1 citation statement)

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“…There are many papers dealing with conceptual differences of the Czech accounting regulation for business combinations and IFRS regulation on the theoretical level, for example (Žárová and Skálová, 2014;Křížová, et al, 2014;Strouhal, et al, 2012;Lasák, 2010;Skálová and Podškubka, 2009), but there are only few papers analysing the actual transactions that took place in the Czech Republic Sedláček, et al, 2011;Sedláček, et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

Business Combinations of Czech Companies: Empirical Analysis of Their Typology

Pospíšil¹,

Vomáčková²

2018

Acta Univ. Agric. Silvic. Mendelianae Brun.

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This paper is a descriptive study which analyses company transformations -a subset of M&A -which took place in the Czech Republic in 2013. Based on the statistical sample containing detail data of 115 transformations, we analysed important aspects of company transformations (M&A) such as ownership structure of the participating companies, deployment of the effective date, acquisition date, balance-sheet date, date of registration and transformation project date, utilization of available forms of company transformations, utilization of financial statements for transformation purposes and incidence of fair-value revaluation. The results of the research shows, that majority of company transformations are in fact corporate holdings reorganisations rather than business combinations as defined by IFRS 3 and it also suggests that the rules for accounting for these transactions are in fact misused for distribution of earnings (even unrealized earnings) through the corporate holdings. We have also identified cases of severe distortion of faithful representation of successor's company financial position, most often as a result of retrospective company transformations, where the effective day of the merger was put before the date of acquisition of the majority on target's equity.

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Section: Introductionmentioning

confidence: 99%