Assets and liabilities measurement in company split
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The aim of this article is to present one of the key problems in the split of a company,i.e. measurement of its assets and liabilities, and determination of the shares (interests)exchange parity. For this, it is necessary to measure the value of shares (interests) of eachparty to the split, i.e. the company being divided and the companies taking over. Neitherthe Accounting Act nor the International Financial Reporting Standards state clearly howto account for the assets acquired in such a situation, and more specifically, whether thebook value or fair value should be used. The article presents the usefulness of the differentmethods of assets and liabilities measurement, depending on the legal method usedin the split and the shareholders structure of the company being divided and the companiestaking over its assets.
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