Comprehensive solution for a sales of a business as a type of business combinations in the Slovak Republic

Abstract

The sales of a business is a part of a broader issue of certain types of undertakings joining into larger economic or legal units. This is known as business combinations in international accounting terminology. The aim of this paper is to comprehensively present and analyse the issue of the sales of a business as one of the types of business combinations in the Slovak Republic from a legal, accounting and tax point of view. The paper clarifies the sales of a business transaction as one of the possible business combinations; explains the relationship between the seller and the buyer because their understanding is necessary for the correct accounting solution of this transaction; offers a comprehensive solution for the transfer of things, rights and property values ​​forming a business in accordance with the Commercial Code. The Commercial Code primarily regulates the requirements of the sales of a business contract, solves the transfer of rights and liabilities, determines the seller and buyer notification obligations and determines responsibility for missing and defective items. The paper also presents a comprehensive accounting and tax solution to this issue from the point of view of both the seller and the buyer of a business or its part according to the currently valid accounting and tax legislation.