Original scientific paper
https://doi.org/10.1080/1331677X.2020.1833744
Business combinations in cooperatives. A critical view of accounting standards
Fernando Polo-Garrido
Elena Meliá-Martí
Abstract
Cooperatives have a different ownership structure compared with
investor owned firms, which causes frictions in the development
of accounting standards. This paper critically reviews the history
of cooperatives in the accounting standards for business combinations and identifies and studies five problematic aspects of the
application of the acquisition method. A guidance to identifying
Business Combinations Under Common Control between cooperatives is proposed. Incompatibilities between the cooperative law
and accounting standards are identified, a modified cost of business combination is proposed, inequalities between members
arising in the application of the acquisition method are indicated
and above all it is shown that the IASB’s decision to allow only
one method has proven ineffective in avoiding accounting arbitrage.
Keywords
Cooperatives; business combinations; mergers; acquisitions; accounting standards
Hrčak ID:
301370
URI
Publication date:
31.12.2021.
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