Accounting Methods For Business Combinations And Croatian Practice

Accounting for business combinations represents a very important issue in financial accounting and reporting. The reason for that standpoint is the existence of two methods for accounting of business combinations and their differences. In order to compare purchase and pooling methods, both are firstly analysed theoretically according to the accounting standards of countries with developed practice, like USA, United Kingdom, Canada, Australia, etc. Furthermore, methods for business combinations are analysed according to the IASs, which are currently used in 78 countries including Croatia. Finally, application of the previously mentioned methods and expert opinion on their differences is empirically tested on the sample of some large Croatian companies.