Open AccessThe Regulatory History Of Business Combinations
Author(s) -
Robert H. Sanborn
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.149
H-Index - 22
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v3i2.6538
Subject(s) - accounting , legislation , consistency (knowledge bases) , politics , business , law and economics , economics , law , political science , computer science , artificial intelligence
This paper examines the legal and accounting history of business combinations. The economic development of guidelines governing current combinations is traced through legislation, court precedents, political events, recording methods, and accounting pronouncements. This examination indicates that the consistently applied accounting principles have been the only unchanged environmental factor during the current round of business combinations. Although the accuracy of the accounting principles in describing economic events cannot be claimed as a harbinger of merger activity, the consistency of those rules would seem, at least, to be a stimulant to merger activity.