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, [...]
In this article we will discuss about the purchase method adopted for reporting business combinations. The Purchase Method of Reporting Business Combinations (SFAS 141): SFAS 141R replaces SFAS 141, "Business Combinations." Beginning in 2009, the acquisition method will be used to account for new business combinations. However, for decades, most consolidated financial reports reflected the purchase method to account for [...]