Concentração de atividades empresariais entre entidades sob controlo comum
: caso de estudo : EFACEC

  • João Pedro Castro Silva Magalhães (Student)

Student thesis: Master's Thesis

Abstract

The present work aims to analyse i) the accounting methods used for business combination under common control (BCUCC); ii) the requirements for the application of each method and iii) the effects of their application in a real case. Firstly, a literature review on the development of entities under common control and on the evolution of the main accounting norms that rule BCUCC processes was conducted. It was found that a normative gap exists to account for these type of operations and thus its regulation has to be made through the International Accounting Standards 8 - Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8). The IAS 8 determines the analogue application of the International Financial Reporting Standards 3 (IFRS 3), namely the application of the acquisition method, as long as the requirements for its applications are fulfilled. If the application of the IFRS 3 is not possible, the IAS 8 determines the application of accounting methods used by other regulators [i.e., the predecessor accounting (US GAAP) or the pooling of interests method (suggested by the Directive 2013/34/EU)]. Then, the BCUCC operation implemented by the EFACEC group (i.e., acquisition method) at the level of EFACEC Power Solution was analysed and the restatement of the balance sheet using the pooling of interests method was performed. It was found that the operation implemented by the EFACEC group followed the IAS 8 recommendations. However, the application of the acquisition method instead of the application of the pooling of interests method results in an over-estimation of assets with direct influence in the equity, reducing the financial leverage. Thus, it can be concluded that the choice of the accounting method used will significantly influence the financial statements generated and that this choice is not exclusively dependent on accounting factors but is also influenced by external factors.
Date of Award10 Jul 2017
Original languagePortuguese
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorLuísa Anacoreta (Supervisor)

Keywords

  • IFRS 3
  • IAS 8
  • Predecessor accounting
  • Business combination under common control
  • Acquisition method
  • Pooling of interests method

Designation

  • Mestrado em Auditoria e Fiscalidade

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