Financial Statement

Accounting aspects of a business sale

Giulio Tedeschi Giulio Tedeschi

This article analyses the accounting aspects concerning the sale of a company, first of all with regard to the essential elements required from both the selling company and the purchasing company, as this is a typical operation that gives rise to tax effects.

Therefore, this article continues analyzing the subsequent tax effects, i.e. the taxation obligation on the seller and the reference cost on the purchaser.

The above implies the need to define and describe the assets that constitute the company that is being sold. Subsequently, an analysis of the implications deriving from the so-called price adjustment clauses is also needed, as such implications – also from an accounting point of view – emerge only at a later date than the sale contract effective date.

These subsequent facts show aspects that need to be analysed also as concerns their tax outcomes.