Some As Aspects of Identification of Enterprises Association

Abstract

Topic: The article deals with the criteria of identification of business combinations and its importance for providing relevant and fair information to users of financial statements. Objective and Tasks: Sharing the changes made by the International Accounting Standards Board in the criteria of identification of the business combinations and their implementation in the practice. A novelty of the identification criteria is clarification of the criteria for businesses and introduction of the “Asset fair Value Concentration Test” Methodology: Relevant standards, guidelines, recommendations, scientific articles, monographs, systematization and comparison methods approved by the International Accounting Standards Board were used in this study. Results: Businesses identification elements (resources, processes, products) and criteria (enterprise and control) are established; Characteristics of the essential processes, in particular, a “principal importance" of the processes for manufacturing the products and the organized labor resources, are discussed; Significance of the “Asset fair Value Concentration Test” is analyzed. Refinement of the criteria of business combinations simplifies the process of such identification with limiting its scope of recognition, which affects a quality of financial information Keywords: Business Combinations; enterprise; control; concentration test; essential processes; organizational labor forces. JEL Codes: L50, L51, L53