The combination of two or more companies. The combination may be effected by one company acquiring others, by the merging of two or more companies, or by existing companies being dissolved and a new company formed to take over the combined business. The relevant accounting standards are Financial Reporting Standard 6, Acquisitions and Mergers, and International Financial Reporting Standard 3, Business Combinations. See also acquisition accounting; merger accounting.
Subjects: Financial Institutions and Services — Accounting.