<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Groups of companies have existed ever since the early 20<sup>th</sup> century in the legal and economic terms. Over time, their concept was complemented, both in legislation and in the corporate practice. The issue of establishing and managing groups of companies is regulated by the corporate legislation. It particularly regulates the concept of the controlling and subsidiary company, company with mutual shares, holding, concern, association of companies and other forms of company associations. In terms of the legal definition, these are associated companies composed of two or more companies that are affiliated to each other as follows: by share in equity or membership interests (equity-related companies), by contract (contract-related companies); by equity and contract (mixed-related companies). These associated companies include a parent company and one or more subsidiary companies, which may be related by equity, contract or both. Besides the general concept of the associated companies, the author aims to point to the liability in a common activity as a group of companies. A particular attention is drawn to the legal treatment and obligations resulting from the International Accounting Standards and binding financial statements related to them.</p></abstract>

Groups of companies have existed ever since the early 20th century in the legal and economic terms. Over time, their concept was complemented, both in legislation and in the corporate practice. The issue of establishing and managing groups of companies is regulated by the corporate legislation. It particularly regulates the concept of the controlling and subsidiary company, company with mutual shares, holding, concern, association of companies and other forms of company associations. In terms of the legal definition, these are associated companies composed of two or more companies that are affiliated to each other as follows: by share in equity or membership interests (equity-related companies), by contract (contract-related companies); by equity and contract (mixed-related companies). These associated companies include a parent company and one or more subsidiary companies, which may be related by equity, contract or both. Besides the general concept of the associated companies, the author aims to point to the liability in a common activity as a group of companies. A particular attention is drawn to the legal treatment and obligations resulting from the International Accounting Standards and binding financial statements related to them.

Groups of Companies and Liability within the Group

Journal of Forensic Accounting Profession

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Groups of Companies and Liability within the Group"}

Groups of companies have existed ever since the early 20th century in the legal and economic terms. Over time, their concept was complemented, both in...

Groups of Companies and Liability within the Group

Published Online: Jul 17, 2021

Page range: 61 - 81

Received: Apr 19, 2021

Accepted: May 30, 2021

DOI: https://doi.org/10.2478/jfap-2021-0005

Keywords
Groups of Companies, Associated Company, Controlling Company, Liability, International Accounting Standards

© 2021 Veljko Trivun, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Groups of Companies and Liability within the Group

Published Online: Jul 17, 2021

Page range: 61 - 81

Received: Apr 19, 2021

Accepted: May 30, 2021

DOI: https://doi.org/10.2478/jfap-2021-0005

KeywordsGroups of Companies, Associated Company, Controlling Company, Liability, International Accounting Standards

© 2021 Veljko Trivun, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Groups of Companies, Associated Company, Controlling Company, Liability, International Accounting Standards