Business Combination Under Common Control (BCUCC) - What Kind of Disclosure is Enough? The Polish Experience

Magdalena Janowicz
European Research Studies Journal, Volume XXIV, Issue 2B, 1004-1013, 2021
DOI: 10.35808/ersj/2321

Abstract:

Purpose: The assessment of the scope and quality of disclosures about BCUCC, which are excluded from the scope of IFRS, published by Polish public companies in their annual financial reports prepared following IFRS. Design/Methodology/Approach: The research uses qualitative and quantitative methods. The research methodology was based mainly on critical analysis of the literature on the subject, quantitative methods, content analysis of financial statements, and synthesis of results. Findings: Most Polish public companies that did not account for BCUCC using IFRS provided at least minimal scope of disclosures necessary for users of financial information to decide the effects that BCUCC had on the information presented in the financial statement. Companies that applied the Accounting Act to substitute for the lacking IFRS solution related to BCUCC provided a higher level of disclosure than other companies. Practical Implications: The use of national accounting regulations may provide a better quality of disclosures about BCUCC. Originality/Value: This paper provides insight into how the problem is dealt with in practice and may be used to form a commentary on the current IASB project focusing on BCUCC.


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