The particularity of preparing statements and the role of audit when performing reorganization: merger and acquisition in Russia and foreign countries

When looking for synergy effect companies in Russia and foreign countries resort to reorganization in the form of merger and acquisition To explain of merger and acquisition transactions the Russia legislation applies the institute of universal legal succession. IFRS and US GAAP applies the term of business unification which is understood as the transaction with the result the buyer gets the control. Comparing basic regulations of relative national standards in European countries, we stipulate the continuing convergence with IFRS: application of purchase method for business combination transactions; identification the purchaser as an entity; treating assets and liabilities by fair value; preparing of consolidated financial statements according to IFRS. However, in spite of joining to EU, member countries have preserved the right to choose national accounting principles for separate reporting and for reporting of companies, whose securities are not traded. For accounting of goodwill the amortization is; the buyer is the entity-buyer by the contract and the merger is treated by the day of government registration. Convergence of national accounting standards to IFRS brings to formation of gaps with tax standards and increase of additional expenses for accounting time differences. Many companies conducting reorganization attract consultants and auditors to accompany transactions on all stages and to secure the due diligence. When Russia will from the 1st of January 2018 transfer to international audit it will ensure the unique approach, raise of quality and increase of confidence of users to audited reporting, which is especially important in the period of reorganization of companies.