Subject The subject of the research is limited to accounting procedures for business combination processes. The scope of IFRS 3 Business Combinations, which requires disclosure about the transaction or other event resulting in acquirer's control over one or several businesses, defines the topic. Objectives The objective is to improve the quality of accounting for business combinations aiming at converging different accounting systems. Methods The research methodology rests on the concept of market component of the cost, and those changes in estimated acquisition cost of the investee, which were caused by changes in market conditions. Results The study proves the need to record business processes that form the investment value of the investee. For this purpose, we offer a method to account for the formation and change in the value of options that determine the market value of the investee. Conclusions and Relevance Understanding the nature and content of accounting procedures for business processes will allow the users of accounting information to understand the components of the cost of investment in a business combination and, ultimately, to ensure the accuracy of the opening consolidated financial statements presentation.
Keywords: business combination, business accounting, stock price, exercise price, fair value
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