Analysis of liquidation of a business company from a legal, accounting and tax point of view

Abstract

The liquidation of a company is the last ownership transaction involved in the existence of that company. Liquidation is a long-term and difficult process leading to the end of a company existence. Despite its negative perception, liquidation is a natural part of the existence of a business company. This paper explains liquidation as one of the forms for dissolving a company, clarifies the obligations of the accounting entity and the liquidator of the company connected with the liquidation, informs about the legal context of liquidation to the extent necessary to explain the liquidation and the accounting context of liquidation. The paper also presents a comprehensive accounting and tax solution to this issue from the point of view of the defunct company in accordance with the applicable business, accounting and tax legislation.