How Mergers and Acquisitions Affected the Basic Accounting Elements of Greek Banks During the Euro Years 2002-2018

During the years 2002-2018 a big wave of mergers and acquisitions took place in Greek Banking System. We have two big time periods that mergers and acquisitions occurred in the Greek Banking System. The first one includes the years 2002-2009 that the main domestic reasons for mergers and acquisitions in the Greek Banking System were the profit and the size so as to be able to expand mainly to the Balkan Countries with cross border mergers and acquisitions for more profit. The second one includes the years 2010-2018 that the world financial crisis affected the Greek Banking System. So the main reason for domestic mergers and acquisitions among the Greek Banks were the strengthening of them against aggressive takeovers, the economies of scale, risk of bankruptcy and recapitalization. In this paper we try to find out how these two time periods of mergers and acquisitions in the Greek Banking System affected the basic accounting elements such as Assets, Loans Equity, all kind of profits, Deposit even the personnel, of the remaining four Systemic Greek Banks. The remaining four Systemic Greek Banks that we examine in this paper are Eurobank, National Bank, Alpha Bank and Bank of Piraeus

Mergers and Acquisitions from an Accounting Approach: A Review of the Empirical Literature

The European Committee support that the Financial Statements drawn up in accordance with IFRS as issued by the International Accounting Standards Board (IASB) provide users of these statements with a sufficient level of information to enable them to make an informed assessment of the assets and liabilities, financial position, profit and losses and prospects of an issuer. The International Financial Accounting Standards (IFRS) are a sound basis on which to unify accounting standards across the world. In its deliberations on and in elaborating positions to be taken on documents and papers issued by the IASB in the process of developing international accounting standards (IFRS and SIC), the Commission should take into account the importance of avoiding competitive disadvantages for European companies operating in the global marketplace, and, to the maximum possible extent, the views expressed by the delegations in the Accounting Regulatory Committee.This paper attempts to present the accounting methods applied with literature and examples when a merger or an acquisition takes place. This work is mainly directed at students and scientist of accountant and finance. Professionals also will get benefit from this paper because they will learn how to apply and understand the IFRS 3, so as to be able to fill in and analyze financial statements with IFRS. At the beginning we talk about IFRS 3 which is relevant to the accounting methods in mergers and acquisitions that occurred in every European country between big firms. We also show what happened when a big firm wants to takeover a small firm. Afterwards we analyze the steps that are needed to take when a firm wants to takeover a bank or an enterprise. Then we describe the Goodwill that is given from the bidder to the target firm if there is any. But which is the fair value of a takeover. If the bidder wants to allocate the cost should use the notes that we describe to determine it. Keywords: Finance, Accounting, Mergers and Acquisitions Jel Classification: M41, G34 DOI: 10.7176/RJFA/10-16-01 Publication date: August 31st 201