TFRS 3 business combinations and an application

The aim of this study is to reveal how to be followed of business combination at the financial statements of business by evaluating them within the context of TFRS. Model applications up to study theme have been made. One of the model applications put forth the process that business will follow in case of not combining, and the other put forth the process business will follow in case of combination. This study consists of three parts. Combination, basic concepts related to combination, and business growth strategies are in the first part. Moreover, types and the reasons of business combinations have been explained. In the second part, business combinations have been dealt with within the scope of basic regulations directing combination applications.Accordingly, business combinations have been explained within the context of Turkish Commercial Law, Capital Market Law, Law about Competition Protection and Tax Laws, Income Tax Law, Corporate Tax Law, Value-added Tax Law and Fees Law. Moreover, business combination process has also been explained in this part. Business combinations have been dealt with in the context of TFRS 3 in third part. The aim, context of this standard, purchase method that will be used in recognition of business combination have been explained by including measurement and recognition of identifiable assets acquired, identifiable debts taken on, minority shareholders and goodwill. In this part, a model application have been made related to combination and not combining of business combinations. The subject of combination in the model application about not combining are a business acquiring supporters and a business acquired.Precombination balance sheet and income statement of each business are presented. And then, share of investment in acquired business and business acquiring in equity of acquired business has been eliminated.And after this elimination remaining consolidated amount made up consolidated balance sheet and income statement. But as combination was refused unanimously at the general meeting, rendering claim and debt amount accounts of acquired business weren't closed with reverse entry. At the example of combination, it consists of three businesses that were acquired by one business acquiring supporters being subject of combination. Right after combination, balance sheet and income statement of each business were given.And then, share of investment in acquired business and business acquiring in equity of acquired business has been eliminated, and consolidated balance sheet and income statement were acquired. At the general meeting, as combination was accepted by a large majority, rendering claim and debt amount accounts of acquired business were closed with reverse entry. In the last part of the study, a general evaluation of the study is presented.