Asked by
stacy bratlien
on Dec 01, 2024
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In a consolidation, a new firm is formed from the assets of the combining firms.
Consolidation
The process of combining assets, liabilities, and other financial items of two or more entities into one. In financial accounting, it refers to the aggregation of financial statements of a group company as consolidated accounts.
Combining Firms
The process of merging two or more companies into one entity, typically to achieve synergies or strategic objectives.
- Appreciate the results of mergers and acquisitions on a company's infrastructure, exemplified by consolidation or subsidiary status.
- Understand the detailed criteria and restrictions related to mergers within the framework of tax and competition legislation.
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Learning Objectives
- Appreciate the results of mergers and acquisitions on a company's infrastructure, exemplified by consolidation or subsidiary status.
- Understand the detailed criteria and restrictions related to mergers within the framework of tax and competition legislation.