Mergers and acquisitions in terms of International Financial Reporting Standards, Tax Procedure Law and generally accepted accounting principles in America

Some changes became obligatory for companies in order to improve their adaptability towards changing and developing world markets. These changes can be in the form of companies increasing their power by taking merger decisions, or buying a company. Nowadays, there is a tough competition between the firms which produce exactly identical or similar products. The companies which keep doing business in the market by keeping their existing size stay behind some firms that merge their powers with others. In addition to these companies that have merger, the co-operations could be made with firms which provide production and logistic needs without any problems; therefore, all work forces could be used effectively in appropriate profession. Furthermore, the companies which believe in adversity of the development by having a single product or service might try to reduce risk level by having a merger with a corporation which produces different product or service. This may be another reason for the merger of companies. For another company, tax advantage may be important point in merger. It is so clear that merger and acquisition processes have different opportunities for companies as well as having influences for enhancing value of the companies. The company which makes a merger decisions should make some analyses before the merger for the purpose of inspecting the propriety of the decision. It has to be very well defined for which reasons this merger is desired, which benefits can be provided as a result should be presented at the beginning of process. The purpose of this study is dealt with all these mentioned topics in the following chapters of the study.