agency dating in online somerset - Rules consolidating subsidiaries

rules consolidating subsidiaries-62

Treatment of Purchase Differentials: At the time of purchase, purchase differentials arise from the difference between the cost of the investment and the book value of the underlying assets.

Purchase differentials have two components: Purchase differentials need to be amortized over their useful life; however, new accounting guidance states that goodwill is not amortized or reduced until it is permanently impaired, or the underlying asset is sold.

Upon consolidation, the original organizations cease to exist and are supplanted by a new entity.

A parent company can acquire another company by purchasing its net assets or by purchasing a majority share of its common stock.

The result is one set of financial statements that reflect the financial results of the consolidated entity. horizontal integration:is the combination of firms in the same business lines and markets. vertical integration: is the combination of firms with operations in different but successive stages of production or distribution or both. Conglomeration: is the combination of firms with unrelated and diverse products or services functions, or both.

Last modified 08-Nov-2014 19:00