Comparison of merger, division and transfer transactions of commercial companies within the scope of TTK, VUK and TMS/TFRS

Businesses may change their structure for reasons such as adapting to today's competitive conditions, expanding their resource provision capacity, benefiting from the synergy effect, tax advantages, borrowing at low cost, having good management, or due to continuous losses, specialization in the production process, desire to change the company structure, or the difficulty of managing large businesses. These structural changes may take the form of mergers or divisions depending on the needs of the company. The purpose of this study is to examine mergers and divisions within the context of the TTK, Tax Laws and TFRS 3 Business Combinations Standard to identify differences and their effects on accounting practices. The first noticeable difference between the TTK and the TFRS 3 Business Combinations Standard is in determining the merger date. Another distinction is that while in TTK there are mergers in the form of takeover and mergers in the form of new business, in TFRS 3 Business Combinations Standard, the only specified method is the acquisition method. Another difference between the TTK and TFRS stems from differing valuation provisions, resulting in variations in merger profit and the amount of corporate tax payable. Differences also arise in the calculations of goodwill, intangible assets and severance pay. One of the main differences in division transactions is that the partial division based on registered values is made in accordance with the tax-free division conditions, and there is a tax to be paid in the partial division made in accordance with the TTK and Tax Laws and TFRS 3 Business Combinations Standard. Another difference arises from the discrepancies in division profit due to the valuation provisions applied under the TTK, Tax Laws, and TFRS 3 Business Combinations Standard. This results in the concept of deferred tax due to temporary differences between commercial profit and taxable profit.