Business Combinations Research Articles

KOMBINASI BISNIS BANK SYARIAH: REFLEKSI SATU TAHUN BANK SYARIAH INDONESIA

This research aims to explore the achievement of PT Bank Syariah Indonesia (BSI) in the first year implemented business combination. Data are penetrated from several information and quarterly financial statements that published through website of BSI. The results of this research show that business combination that executed by BSI is a merger where a company that become a survivor is PT BRI Syariah, Tbk., while Bank Syariah Mandiri and BNI Syariah become merging companies. So, BSI is a subsidiary company of PT Bank Rakyat Indonesia, Tbk. The products and services that offered by BSI to its customers are multi-enough and also accommodate the needs of customers both have sophisticate and naive of technology. Beside of that, the financial performance of BSI also works out positively trend during three quarters respectively. The limitations of this research are only to capture operationally one year of BSI and just take three aspects namely portion of ownership, products & services and financial performance, so relatively lack to show the comprehensive condition. The suggestion for next research is to develop or take other aspects that not studied in this research.

To disclose or not to disclose? To what extent information about business combinations matters on example of Polish companies

The purpose of this paper is to verify if there is any link between the amount of information about business combination presented in the financial statement for the year in which the business combination took place and the further profitability of the combined company. The research methods used involve critical literature analysis, content analysis of financial statements and quantitative methods (statistical tests). Data about 80 business combinations from years 2012 – 2014 was analysed and profitability (three and five years after the business combinations) of the combined companies was assessed in connection to the scope of disclosure made. Whereas no link between the information disclosed and profitability was discovered, the research itself may be a starting point for other research of similar kind, conducted on more numerous samples and taking other factors into consideration.

Dylematy ujęcia ujemnej wartości godziwej aktywów netto zorganizowanej części przedsiębiorstwa przy połączeniu jednostek według polskich przepisów rachunkowości

Objective : The Polish Accounting Act and other Polish GAAP does not define business as a business combination. This act enables the use of International Financial Reporting Standards but National Accounting Standard no. 4 provides some concepts that can be applied to define what a business is. The first aim of this paper is to apply this standard to precisely explain the term “business” in sense of Polish GAAP. Because of fair value assessment of the business in combination, such a business can have a negative income value, resulting in a negative fair value of net assets. The second aim of the article is to characterise Polish GAAP in the context of zero value of the acquiree’s assets at initial recognition. Research Design & Methods : The legal acts of Polish GAAP were read and analysed. Findings : On the basis of NAS 4, a business can be defined as combined assets with liabilities and reserves if they are assigned to assets and generate economic benefits as net cash flows from operating activities. The article further shows that Polish GAAP does not include the possibility of recognising negative fair value of business net assets even if the restructuring the assets should be revaluated. In Polish GAAP, the impairment of initial value of net assets and, at most, reverse of the impairment loss is assumed. Implications / Recommendations : For the proper accounting allocation of a business combination, the Polish Accounting Act must be completed. This would include providing a definition of the business as recognition method of negative fair value of net assets, resulting from the negative income value of those assets. Contribution : The paper contributes to Polish accounting some concepts of business on the basis of NAS 4. It also shows contradictions in the measuring of fair value of business that is valued at negative income in business combination.

ІНВЕТИЦІЙНІ ТЕНДЕНЦІЇ РОЗВИТКУ «SPA» ТА «WELNESS» ТУРИЗМУ

The article examines the concepts of SPA and wellness tourism, its role and significance for tourism. The current state and trends in the development of SPA and wellness tourism are characterized. Proposals are offered regarding further prospects for the development of SPA and wellness tourism. Wellness is a term that recently entered the dictionaries of many languages of the world and means a state of physical and mental well-being, a beautiful state of mind and body, relaxation, restoration of the body's strength through active health activities. That is why, due to the main functions and the growing demand for wellness, at the beginning of the current century, a new subspecies of medical and health tourism appeared – wellness tourism, which is currently one of the leading trends in the tourism industry. Spa and wellness tourism is at the stage of active rapid development. Spa and wellness vacation is an integral part of the life of the population in most countries around the world, it has such a great potential that it now stands out as an independent segment of the tourism market with a wide range of investment opportunities: from large-scale hotel projects adjacent to clinics and located within cities, to already existing specialized complexes with some modifications in the structure of services. Consumers who have chosen spa and wellness tourism will be able to relax, undergo a comprehensive examination and treatment, rejuvenate and improve their appearance at the same time. Hotel enterprises do not ignore the trend towards wellness and SPA services and increasingly increase their complex for guests not only by expanding additional services and entertainment, but also by including the services of a general health complex, i.e. a combination of the hotel business and the beauty and health industry, resulting in wellness hotels and hotels with wellness centers. In Europe, guests of high-class wellness hotels have the opportunity to choose between modern and ancient healing methods, classic and non-traditional medical recipes, they are offered an individually designed program of physical training and, of course, a full range of body care services. Visitors to these hotel enterprises are involved in yoga classes, drinking herbal teas, tempering and active recreation in nature. They have a chance to learn a lot about themselves by visiting individual consultations of a sports coach, a physiotherapist, a cosmetologist, and experts in the field of wellness services. In addition, wellness hotels give a rare feeling of complete detachment from reality.

ANALYSIS OF HIGHER EDUCATION SYSTEM DEVELOPMENT IN UKRAINE AND EUROPEAN COUNTRIES

The work focuses on the priorities of European higher education, which are aimed at improving the organizational structure and quality of scientific and vocational training: internationalization and transnationalization of educational processes, ensuring the quality of higher education, updating and improving the level of doctoral studies. Education, development of the culture of academic autonomy and creativity of higher educational institutions as a guarantee of sustainable self-development, orientation to a harmonious combination of scientific, business and practical training.
 The main trends of experience of European countries, on the mechanism of promoting the activities of higher educational institutions and the formation of the education system in Ukraine are considered. The current state of higher education is accompanied by crisis phenomena, the negative consequences of which are manifested in: a certain lag in the results of scientific research of higher education in life needs and requests; slow reorientation to the training of new specialists that are lacking in the labor market; reducing the quality of the educational process and the level of knowledge of graduates; increasing inequalities of opportunities for admission to high school and their successful completion for representatives of different social strata; growing dissatisfaction with the conditions of study on the part of students and their parents, etc.
 The practice of higher education in general should be modernized; conditions for intensifying, stimulating and stimulating the natural process of increasing the institutional capacity and independence of higher schools should be established. The problems of competitiveness of higher education, ensuring the ethical foundations of the university, social responsibility and professional orientation to the future training of specialists may be further research on the development of European and national higher education.

Questioning the Ability of the Discussion Paper Business Combinations under Common Control in Improving Decision Usefulness

AbstractThis paper makes a number of observations on the International Accounting Standards Board's Discussion Paper DP/2020/2 Business Combinations under Common Control. We address issues associated with the approach for applying acquisition accounting and discuss the practicality of the proposed criteria. We question the ability of this new DP to contribute to either decision usefulness or comparability in the presence of non‐controlling shareholders. We also address issues related to cost–benefit considerations and (unintended) earnings management opportunities, and propose some adjustments to properly reflect economic substance.

Analisis Dynamic ETL Incremental Load untuk Data Integration Datawarehouse

Data integration is a combination of techniques and businesses that are used to collect data from different sources into useful and valuable information ETL process that includes extracting data from various data sources, transforming data to form and calculate data and load data on target storage, to support data warehouse need. Based on organizations and industries that have implemented data warehouse, the problem that generally arises regarding data load is the difficulty in integrating different data sources, how to form data from various data formats into uniform data, how to integrate data delta between data sources and target storage in an incremental load process so that this data synchronization process can be carried out continuously and relatively faster. ETL process requires a platform that can facilitate data integration needs, in order to run this process. SSIS (SQL Server Integration Service) is a Data Integration platform to build an enterprise-level data integration and solutions for data transformation. Integration Service can extract and change data (transform) from various sources such as XML data files, flat files, APIs, and relational data sources, and then load into one or several destination data. According to the problem related to data load, we will examine how the solution model uses SSIS for the ETL process. This paper proposed an ETL Architecture model by completing the ETL process for full & incremental load extraction and the original data layer.

Business Circle Identification and Spatiotemporal Characteristics in the Main Urban Area of Yiwu City Based on POI and Night-Time Light Data

The activity of the urban night-time economy is one of the most important indicators reflecting the prosperity of an urban economy. The business circle is an important carrier of urban commercial activities and the core area of urban nightlife. This paper takes the main urban area of Yiwu city as the research object. Based on POI data and night-time light remote sensing data, two-factor mapping, kernel density analysis, DBSCAN clustering, and local contour tree methods are adopted to identify the business circle structure of the main urban area of Yiwu city and analyse the relationship between business circle characteristics and the night-time economy. The following conclusions can be drawn. (1) The spatial superimposition relationship between the night-time remote sensing data and points of interest (POI) data in the main urban area of Yiwu city is good, and the overall coupling results show obvious circle structure characteristics. (2) The spatial distribution of different business combinations has obvious regularity: comprehensive shopping business shows a multicentre distribution pattern and has a hierarchical feature. In contrast, professional food and beverage and leisure and entertainment businesses are close to urban residential areas, and different groups of people live in different places with their own characteristics. (3) From 2015 to 2019, the brightness value of each business circle showed a continuously increasing trend. In 2020, due to the impact of COVID-19, most of them declined. (4) Overall, the difference in business circle tiers reflects the difference in the level of night-time economic activities.

The impact of customer capital on company's market value: An empirical study from 100 U.S. stock market leaders

Abstract Objective The aim of the paper is to establish the relationship between the customer capital and the company's market value (MV). Examining this impact seems justified as the topic has been rarely investigated till now. Methods The regression analysis was used to achieve the research objective. We analyzed reports of 100 U.S. stock market leaders for 2018, which were prepared in accordance with the requirements of International Financial Reporting Standard 3 «Business Combinations» and included information about customer capital. Findings The hypothesis that the customer capital has a direct impact on the company's MV is confirmed by the results of this study. Practical implication The proposed regression model (Model 3) can be used for needs of value-based management. Originality/value Customer capital as a tool of value-based management is a poorly studied topic in the context of understanding the importance of the role of intangibles in creating value for company.

TRANSITION OF MERGERS AND EMPLOYEE BEHAVIOR: A LATEST OVERVIEW OF SHARIA BANKING ORGANIZATIONS

Various kinds of strategies tend to be carried out by business people in order to maintain their business while strengthening their position among other competitors, such as carrying out strategies in the form of business combinations or mergers. However, often the merger strategy also has an impact on the internal parties of the entities that do it. This study seeks to dig deeper into the perspectives and views of employees affected by the merger, especially employees of Islamic banking entities. The research was conducted using qualitative methods. Data were collected from a number of direct and indirect interviews (through open-questionnaire) on eight employees from upper management and lower management at Bank Syariah X in Malang City. Overall, employees can be said to respond positively to the merger in Islamic banking, although there are some negative things related to welfare that they are worried about.

Corporate Governance Patterns in Family Firms Around the World

Family business literature has offered different typologies and taxonomies to examine family firm heterogeneity, however the extant research has focused on the mere descriptive classification without analyzing behavioral patterns of the different types of family firms. Even more, most of the existing classifications are empirically tested in one single country. To address these two research gaps, we draw on the theoretical configurative approach and use the Successful Transgenerational Entrepreneurship Practices (STEP) international dataset to explore different family firm configurations based on the combination of business and family governance practices. For each type of family firms, we analyze their transgenerational entrepreneurship practices, non-economic goals, and firm performance patterns. Additionally, stemming from institutional isomorphic approach, we theoretically argue and empirically found evidence that there are governance configurations more prone in some countries than others.

Contribution of pig farming to household in Tenga Subdistrict, South Minahasa District

The people of Tenga Subdistrict, South Minahasa District have raised pigs as well as used them as a source of household income. Pig farming has been running for about 15 years, although sometimes it receives losses. This study aims to determine how much the contribution of pig farming to household income and the factors that affect the income of pig farming in Tenga Subdistrict, South Minahasa District. This research was conducted during March 2021, and the sample locations in Tenga Subdistrict, South Minahasa District in Tenga Village, Pakuweru Village, and Pakuure Village were determined using the purposive sampling method, with the consideration that these areas are areas that have a large population of pigs. The sample was determined by the total quota sampling method, namely all pig breeders in the three sample villages as many as 30 farmers. The analysis model used to estimate the factors that affect income is the multiple linear regression equation models. Pig farming was able to provide the income of IDR 17,431,281/year with an average of 26 pigs/farmer. Pig farming contributed 40% to household income. Pig farming has the largest contribution to the household income of pig breeders. The factors that influence the income of pig farming are the age of the farmer, the number of ownership of pigs, and the type of business combination. Farmers needs to increase the number of sows, to increase household income. The government’s policy is a program of providing assistance in the form of pigs, as broodstock for farmers.

Business Combinations under Common Control: Further Considerations

AbstractThis paper makes a number of observations on the International Accounting Standards Board's Discussion Paper DP/2020/2 Business Combinations under Common Control. I address issues such as the choice of the controlling party or transferred business book, the principles and objectives of the Discussion Paper, and the relationship with related party disclosures.

Business Combinations under Common Control: A Controlling Entity Cost Approach

AbstractThis paper discusses the controlling entity's perspective in business combinations under common control (BCUCC) and suggests some issues for the International Accounting Standards Board (IASB) to consider in its redeliberations on the preliminary views in the Discussion Paper. The paper explains the use of a book‐value approach in practice, specifically by listed companies and pre‐listing initial public offering (IPO) candidates in Hong Kong, the relevance of the controlling entity perspective and the importance of pre‐combination information to users of the financial statements. This paper discusses the controlling entity's perspective in BCUCC and suggests some issues for the IASB to consider in its redeliberations on the preliminary views in the Discussion Paper.

Business Combinations under Common Control: Filling a Gap in IFRS Standards

AbstractThe aim of this paper is to explain the International Accounting Standards Board's (IASB) preliminary views for accounting for business combinations under common control, an issue not currently addressed in International Financial Reporting Standards. Such combinations are widespread and the accounting for them is diverse. The IASB's preliminary views aim to reduce diversity in practice and to improve the information provided to investors so they can understand the effects of these transactions and compare companies that undertake them.Accounting for business combinations under common control is not currently addressed in International Financial Reporting Standards. The author describes some of the International Accounting Standard Board's proposals to reduce diversity and improve investors’ information in this area.

Business Combinations under Common Control: The Gain/loss Group Perspective. What the IASB Project Leaves Unaddressed

Although BCUCCs are widespread, a clear treatment is missing under IFRS. Most contributions have taken partial views. This article innovatively provides a systematic theoretical apparatus of the role accounting plays for all the affected members of a group, with a focus on gain or loss opportunities below the consolidated statements. The method used is international technical accounting analysis under IFRS and U.S. GAAP. It shows how a BCUCC may be driven to achieve gain/loss in separate financial statements and how cross-company consistency in policies and substance may reveal gain/loss arbitrage; the interaction of principles for disposals, demergers, and business combinations; and the position of sub-holdings, which in real practice is more relevant than the ultimate parent company. This paper is timely, as the IASB has recently published a Discussion Paper. The IASB project fails to give answers to these points as it only looks at the receiving entity and consolidated statements.

Give One a Fish or Teach One to Fish: An Exploration on Intra-Entity Transfers

Advanced accounting covers a series of challenging topics including business combination and financial statement consolidation. Students in advanced accounting class often have a hard time understanding the consolidation journal entries for intra-entity transfers. We develop an innovative “do-it-yourself” approach to teaching this difficult topic. To corroborate the effectiveness of this new approach relative to the traditional method, we randomize these two approaches in different sections and collect data from both samples, including grades on a quiz on intra-entity transfers and responses in an end-of-class survey. Both the quiz performance and survey feedback indicate that this new approach to teaching consolidation journal entries for intra-entity transfer is more effective than the traditional method demonstrated in current textbooks.

Response by the Financial Reporting Policy Committee of the Financial Accounting and Reporting Section of the American Accounting Association to the FASB Invitation to Comment on Identifiable Intangible Assets and Subsequent Accounting for Goodwill

SYNOPSIS In October 2019, the Financial Reporting Policy Committee of the Financial Accounting and Reporting Section of the American Accounting Association submitted a comment letter to the Financial Accounting Standards Board regarding the accounting for certain identifiable intangible assets acquired in a business combination and subsequent accounting for goodwill. This paper summarizes the content of the comment letter and discusses opportunities for future research on intangible assets that may inform accounting standard-setting decisions. JEL Classifications: M40.

WHAT DETERMINES THE APPLICATION OF IFRS 3 IN ACCOUNTING FOR GOODWILL?

Accounting treatment of goodwill is often described as one of the most complex and controversial topics in the field of financial reporting, so it is of primary interest to examine the factors that affect application of IFRS 3 in Serbia given the low quality of financial reporting in developing countries to which Serbia belongs. Paper results show low quality of financial reporting on domestic business combinations which is an indicator to professional and regulatory bodies that there is significant room for improvement in this field. Research findings also show that: type of audit firm, the country of origin in which ultimate owner of an acquirer operates, legal form of an acquirer and finally transaction size play an important role in determining whether an acquirer will apply IFRS 3 when it comes to accounting for goodwill. Besides that paper reveals that materiality of goodwill is of significantly lower magnitude in domestic transactions than in transactions realized in developed European economies, but that the average percentage of consideration transferred allocated to goodwill is almost identical which implies that on average domestic and European M&As are equally motivated by the acquisition of goodwill as of the acquisition of identifiable net assets.

The Netherlands’ first architectural couples: women architects in their own right?

In the period up to the end of the Second World War, 21 women in the Netherlands completed an academic architectural course. Five of these women married a fellow architect and conducted a joint architectural practice with their husband. These practices profited from the post-war reconstruction boom and, in the 1950s and ’60s, from the growing demand for housing and utilitarian buildings.
 Jannie Kammer-Kret, Toki Lammers-Koeleman, Jeanne van Rood-van Rijswijk, Koos Pot-Keegstra and Lotte Stam-Beese contrived to flourish in their chosen profession, and all had successful careers. The collaborative model embraced by these couples, which allowed the female partners to develop their potential to the full, was surprisingly emancipated for the time. Although a home-based office, with its combination of business with household and children, held obvious appeal for the woman, the initiative for such arrangements sometimes came from the husband. There were several variations on the respectful and equitable collaborative model, ranging from one in which each partner worked independently on their own commissions to one in which the melding of individual contributions was such that it was no longer possible to attribute designs to one or the other partner. What these models demonstrate is that the women architects did not need to depend on the name and fame of their husband but were perfectly capable of shaping their own career.
 The work of these women architects was strongly influenced by Nieuwe Bouwen principles as reflected in the application of a functionalist and sober formal idiom, averse to superfluous decoration. Unsurprisingly, given the professional circles they both frequented, their partners held similar architectural views. This undoubtedly contributed to mutual inspiration and possibly also to two-way influence.
 The output of women architects is astonishingly varied. These women responded to the spirit of the times and to the sometimes difficult economic circumstances by employing new types of dwellings, building materials and techniques, designing buildings for new groups of residents or by familiarizing themselves with the latest requirements of industrial clients or government bodies. Their portfolios encompassed commissions for utilitarian buildings as well as for the more predictable houses. Their household experience and practicality proved particularly useful in the design of private homes, residential aged care and schools, finding expression in efficient floor plans, modern furnishings and new, easy to clean materials. This is also evident in the home-cum-practice they designed for themselves, where they were able to give free rein to those principles.