Accounting experts are betting on business mergers and spin-offs to avoid bankruptcies, after winning the Ertes by Covid. Better governance will allow them to opt for European funds at an advantage.
Faced with this avalanche of business dissolutions that are expected, accounting experts advocate business collaboration as a viable alternative to which many entities already resort, with mergers, spin-offs and business combinations being very useful in these circumstances.
This is one of the conclusions of the II Virtual Conference of the Registry of Accounting Experts, REC, which was attended by about a thousand of these professionals, who analyzed the current situation, characterized by the terrible effects of Covid-19 on the companies, which has led them to carry out a review of their business models, their strategic alliances and the possibilities of business collaboration, which allows them a greater professionalization in the mechanisms of their corporate governance in order to obtain a competitive advantage and be in a better position to qualify for European funds.
The ICAC advocates the adaptation of companies to the requirement of sustainability
Valentín Pich, president of the General Council of Economists of Spain, highlighted “the need to complete and standardize the criteria to be followed in these operations at the national level, providing an adequate and sufficient framework for all users of the financial information prepared by companies. of capital “.
For Pich “the role performed by the ICAC is fundamental in the transposition of the International Financial Reporting Standards (IFRS), since this organization always attends to the characteristics of small and medium-sized companies, and is governed by the cost criterion. benefit on financial information requirements for this type of company “.
The president of the Accounting and Auditing Institute (ICAC), Santiago Durán, referred in his speech to the need for companies to adapt to new and future demands, once the Directive on information is definitively transposed non-financial and sustainability of companies and groups, to give a complete and real picture of their situation.
Durán referred to the recent public consultation on the draft accounting standard for operations between group companies, of the ICAC, whose objective responds to the need for the financial statements of Spanish companies to meet high quality standards in financial information that allow comparability and provide the information required by the different users and, especially, by the different markets, all in line with IFRS.
Finally, Fernando Cuñado, new president of the REC, explained the need to work so that they can survive and avoid bankruptcy, “a problem that seems to be that as of September, with the progressive reduction of aid from the Erte, the Recovery”.