Accounting and tax issues in terms of the merger through absortion

• Author: Busuioceanu S.
• Pages: 229-238

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 9 (58) No. 2 - 2016

Accounting and tax issues in terms of the merger

through absortion

Steliana BUSUIOCEANU1

Abstract: In a time when economies are more and more globalized, more inter – connected

and facing economical – financial issues that tend to spread in a fast and even violent

manner, with an impact on all social – economic levels of society, economic agents are

searching for solutions in order to deal with this particular type of difficult situations, or

even to survive. The present paper aims at revealing some of the accounting and tax issues in

terms of the merger through absorption in the case of two private entities, as a business

restructuring solution, in view of reaching a more compact and more efficient management

of the latter.

Keywords: merger, absorption, net accounting assets, exchange ratio, overall assets

Foreword

“It is in crisis that inventions are born, alongside great discoveries and

strategies. It is the one who overcomes the crisis who actually goes

beyond his very own limits, without remaining «rusty». Whoever finds

crisis to be guilty of his failure is actually threatening his own talent

and skills and pays more respect to problems than he shows to

solutions. The real crisis is that of being incompetent” (Albert

Einstein).

The need to cut down on expenses and the acute lack of liquidities which is even

more seriously felt in a period of crisis, are the ones to determine small and large

groups of companies to search for solutions in view of re – organization of the

business activity the latter run. Part of the solutions the latter turn to in such difficult

times is also represented by the reorganization of the business activity through

merger or division. By means of a merger, one may restructure, reorganize and gain

more efficiency in terms of the managerial decision process, given the acquired

professional and managerial expertise.

1Transilvania University of Braşov, steliana.busuioceanu@unitbv.ro