[Purpose]In Article 11 ② of the Korea Fair Trade Act, the total amount of consideration in exchange for a business combination is presented. However, there is no clear criteria for measuring and evaluating the consideration. Therefore, this study aims to analyze Article 11 ② of the Fair Trade Act from an accounting point of view and propose improvements to the Act.
[Methodology]Overseas legislative cases (U.S.A., Germany, Austria, EU), Korea International Financial Reporting Standards, Korea Inheritance and Gift Tax Act were investigated.
[Findings]First, the Fair Trade Act needs to be diversified and specified by the types of transaction consideration. In addition, it is necessary to organically link the Fair Trade Act and accounting standards by using the concepts suggested by K－IFRS when measuring the consideration amount. Second, the Fair Trade Act needs to be clear criteria for measuring the transaction amount. Third, the fair value criteria should be applied firstly to the transaction amount, and if the fair value is unclear, the evaluation standards under the Inheritance and Gift Tax Act should be applied.
[Implications]This paper has an implication that the Korea Fair Trade Act, which has been mainly studied in law, was analyzed from an accounting point of view. Through this, it is meaningful that the applicability of the Fair Trade Act has been increased, and the possibility of harmonization with the accounting has been increased.