FASB Statement No. 95, "Statement of Cash Flows," mandates that companies include a statement of cash flows among their financial statements. The consolidated statement of cash flows is not prepared from the individual cash flow statements of the separate companies. Instead, the income statements and balance sheets are first brought together on the worksheet. The cash flows statement is then [...]
Get the answer of: Why do Business Engage in Business Combinations? Reasons for Firms to Combine: A common economic phenomenon is the combining of two or more businesses into a single entity under common management and owner control. During recent decades, the United States and the rest of the world have experienced an enormous number of corporate mergers and takeovers, [...]
Control over a subsidiary was assumed to have been achieved through a single transaction. Obviously, Boeing's takeover of Alsalam shows that a combination also can be the result of a series of stock purchases. These step acquisitions further complicate the consolidation process. The financial information of the separate companies must still be brought together, but varying amounts of consideration have [...]