DOI: 10.5176/2010-4804_2.3.219
Authors: Paolo Pietro Biancone
Abstract:
Business combinations under common control (BCUCC): the Italian Experience. The aim of
this paper was to analyze the phenomenon of business combinations under common control
(BCUCC) with emphasis on the Italian experience, focusing on information deduced from a sample of Italian financial statements and comparing them with each other and with the same number of European listed companies. We started from a theoretical analysis of the phenomenon, contextualizing it within the IAS/IFRS framework, and discussing the different visions and possible solutions that have been suggested by other important national and international organizations (US GAAP, Assirevi, China GAAP), and then proceeded to analyze the financial statements of the most important Italian companies in detail. We subsequently considered the two different methodologies for accounting, delineating the analogies and differences between them, in an attempt to investigate the reasons why one of them could be preferable to the other and the different effects of each on consolidated financial statements. Finally we analyzed the different informational needs of users of the financial statement compared with cases of “normal” business combinations. The samples chosen for our research comprised a certain number of companies randomly chosen from Italian stock exchange quotations as well as from the other major Italian stock index FTSE MIB.
Keywords: Business combination, Business combination under common control, Common control, IFRS 3, Pooling of interests, Predecessor basis of accounting
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