came to partnerships
A contribution is any economic resource that creates or can create returns as a result of applying one or more processes.A process is any system, standard, protocol, agreement or rule that, when applied to a deposit or deposits, creates or can produce returns.
Return – the result of contributions and processes applied to such deposits that provide or are able to provide income in the form of dividends, cost savings or other economic benefits directly to investors or other owners, members or participants.
Given the fact that the acquisition of a business and a group of individual assets is reflected in the statements differently, it is important to understand how the first differs from the second. Such an analysis is based on the three components of a business in terms of IFRS 3 Business Combinations, which is why if a company is able to demonstrate contributions, processes and returns, then, as a rule, there is a business as such. Continue reading
Legal “packaging” of new projects always consists in selecting a balanced set of tools: choosing the right organizational form of the company, contracts, working out the fundamental conditions of constituent documents and agreements, etc. One tool is not enough. At the same time, we do not forget that any legal structure of a business must simultaneously solve several problems:
fixing relationships between partners,
providing guarantees to their interests in this project,
property safety of a business project and its participants,
legal tax savings,
owner control. Continue reading
Any questions regarding the conditions for participating in the business, including the possibility of leaving the business, selling a share or a business as a whole, should be discussed at the stage of creation and active development of the business, until everyone is inspired and does not think about possible difficulties.
At the same time, it is important that all, even the most non-standard arrangements of partners, be settled as much as possible, taking into account the real tools and capabilities of the current legislation. This will help to avoid future unexpected scenarios of relations.
Today is another case from our practice to illustrate how you can formalize the fantasy vision of business owners regarding a possible way out of it. Continue reading