When is consolidation not required?

Q: How does joint control differ from control as applied on consolidation?

A: As per IFRS 10 , an entity is said to have control if they have power over investee, right to…

Q: What has been the rationale for LVMH acquisitions

A: Question is based on the concept of business management

Q: What constitutes a dicontinued operations.?

A: Definition:   Income statement: The financial statement which reports revenues and expenses from…

Q: closing out overapplied

A: Overapplied manufacturing overhead is closed out by crediting Cost of Goods Sold or allocating among…

Q: What is the basis for distinguishing between operating and nonoperating items?

A:

Q: Define defensive merger

A: Answer: Defensive merger means a merger in which a firm joins with other firm to avoid takeover by a…

Q: What is merger?

A: Merger: It is a deed that joins 2 existing firms into one new endeavor. There are a few sorts of…

Q: What is 'fair value',and why is it relevant to consolidation accounting?

A:

Q: What is the dual purpose of the closing process?

A: The closing entries enable the company to transfer the balances out of certain temporary accounts…

Q: What is proportionate consolidation? and how will it affect the JV?

A: The proportionate consolidation is the method in which the company reports the assets and…

Q: what is disinvestment ?

A: Disinvestment:  Disinvestment means selling off the assets such as manufacturing plant, a division,…

Q: Why should the FIFO method be called a modified or department FIFO method?

A: First-in-First-Out (FIFO):In this method, items purchased initially are sold first. So, the value of…

Q: Which decision is called the abandonment decision?

A: Answer: The decisions relating to the company that provides flexibility to discontinue the project…

Q: How does the change in the PBO occur?

A: Projected Benefit Obligation:   It is a pension concept in accounting as it is the present value of…

Q: What is meant by Wraparound filing?

A: Financial reporting: Financial reporting is the procedure used to communicate the information…

Q: IS a outsource?

A: Outsourcing is the process of hiring a third party to perform the company's services that are…

Q: What are some motives for divestitures?

A: The question is based on the concept of divestiture strategy, which is used by company to overcome…

Q: Within the consolidation process, what is the purpose of a worksheet?

A: The worksheet is used to record the consolidated balances by eliminating the inter-company…

Q: Define Loss contingency.

A: A loss contingency gives the reader of the financial statements early warning of an impending…

Q: What does the elimination process accomplish?

A: Intercompany elimination:   Intercompany elimination refers to the process in which the transactions…

Q: What kind of acquisition is it?

A: Mckinsey divided the types of acquisition based on the purpose of such acquisition. 'Acquisition for…

Q: Distinguish between cumulative or noncumulative?

A: cumulative and noncumulative preferred is assumed since the key term is not given.

Q: What Constitutes a Discontinued Operation?

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: When is a GAAP departure appropriate?

A: Definition:   Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: What is management by exception?

A: Management by Exception: Management by exception is one of the management styles where the…

Q: what is double entry system ?

A: Double entry system of accounting is based on the accounting equation as follows: ASSETS = EQUITY…

Q: why would using a single WACC not be appropriate for valuing an LBO?

A: Leveraged Buyout (LBO) It is an acquisition in which the primary source of consideration is debt.…

Q: When are loss contingencies recorded?

A: Definition:   Contingent liability: This is an uncertain obligation which might be incurred on a…

Q: What is breakup value?

A: Answer: Break-up value is nothing but a valuation that suggests the business will be split into…

Q: what is the reconciling DIFFERENCE:

A: A bank reconciliation statement has been prepared to reconcile the balance as per pass book and…

Q: Define the term Acquisitions.

A: An acquisition is when one company purchases most or all of another company's shares to gain control…

Q: What does Unbundling entail reducing?

A: Unbundling is the process of selling, changing, or cutting assets, product lines, divisions, or…

Q: Define devaluation

A: Currency- Currency is defined as money in terms of paper or coins which is issued by the government.…

Q: What is horizontal merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

Q: What is hostile merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

Q: What are some types of divestitures?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: Define roll-up merger

A: Roll-up merger: It is a consolidation process in which two or more companies are combined to form…

Q: Methods and rules to be followed in case of reconstitution?

A: Solution- It is often noticed that a partnership firm undergoes restructuring. These changes are…

Q: Define divestiture

A: Introduction: A divestiture might happen when a business unit is thought to be redundant afterward…

Q: Difference between Internal reconstruction and External reconstruction (Merger and acquisition)?

A: Definition: Acquisition: The acquisition refers to the business combination when one entity or…

Q: What is the OLAP operation called consolidation?

A:

Q: What is merger waves?

A: A merger is an agreement under which two existing companies unite into one new company. Mergers are…

Q: Define the term Principles of Consolidation.

A: To solidify (solidification) is to join resources, liabilities, and other monetary things of at…

Q: Define Quasi reorganization.

A:

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.