Merger accounting meaning

In this issue: EU fundamentals Competition and state aid Financial services Free movement, immigration and employment Energy Environment Life sciences Regulatory TMT International trade Daily and weekly news alerts New and updated content Trackers EU fundamentals European Commission publishes 2024 State of Schengen report The European Commission has issued its State of Schengen assessment, spotlighting achievements, challenges and developments across the area over the last 2023–24 cycle. As the world’s most visited destination in 2023, Schengen made a significant impact on the EU economy, with tourism accounting for nearly 10% of the EU’s GDP and supporting about 22.6m jobs. See: LNB News 17/04/2024 30. Competition and state aid Merger—European Commission approves Illumina's divestment of GRAIL The European Commission has cleared Illumina’s proposal to sell GRAIL under the EU Merger Regulation, following remedial measures that require Illumina to unwind its completed takeover of GRAIL, which the Commission adopted...

This month marks the formal start of the transition to a new merger regime in Australia, the Egyptian Competition Authority (ECA) issuing an FAQs guide clarifying various matters, amendments (including merger control changes) to Mexico’s Federal Economic Competition Law taking effect, and Paraguay’s yearly update of merger control thresholds. Australia—transitional period for new merger regime begins; government confirms notification thresholds and notification fees From 1 July 2025, Australia’s new merger control framework took effect. It is presently available on a voluntary basis, and will be compulsory from 1 January 2026 for any share or asset acquisitions that meet the monetary thresholds. On 30 June 2025, the government settled a notification instrument setting out key aspects of the regime (including the notification thresholds, targeted notification requirements, forms and fees). Notification thresholds The final instrument leaves unchanged the turnover thresholds for mandatory notification, as previously proposed in the exposure draft released for consultation on 28 March 2025. They are listed below. Threshold type ...

ARCHIVED: This archived Practice Note examined in detail how Brexit might affect and influence, in the period immediately before 11pm (GMT) on 31 December 2020 (IP completion day), corporate joint venture transactions, including, without limitation, joint ventures formed before IP completion day by the relevant parties and the drafting implications for joint venture shareholders’ agreements concluded before IP completion day. For guidance on the impact of Brexit on corporate joint venture agreements after IP completion day, refer to the Practice Note titled Brexit—IP completion day impact on joint venture agreements [Archived], for further details. At 11pm UK time on 31 January 2020 (exit day), the United Kingdom departed the European Union under a ratified Withdrawal Agreement concluded between the UK and the EU. The UK is now treated by the EU as a ‘third country’, that is, a state which is neither an EU Member State nor a member of the European Free Trade Association (EFTA). However, in line with the Withdrawal Agreement, the UK’s relations with the EU...

Under the corporate intangible assets regime in Part 8 of the Corporation Tax Act 2009 (CTA 2009), the default position is that a company’s gains and losses on intangible fixed assets (IFAs) are determined, and recognised as credits and debits for corporation tax, in accordance with how those IFAs are treated in the accounts. Put simply, the company’s financial statements, prepared in line with generally accepted accounting practice (GAAP), form the starting point for identifying the taxable and deductible items and amounts relating to the company’s IFAs. This is commonly described as ‘tax following the accounts’. Nonetheless, there are a number of exceptions to this overarching approach, where the corporate intangible assets rules require a move away from the accounts and dictate that IFA credits and debits are worked out on an alternative footing. For a broader explanation of the taxation of IFAs, see Practice Note: How intangible fixed assets are taxed—basic principles. One circumstance in which the legislation can override exclusive reliance on the company’s accounts is when an...