Article Summary about acqusition and consolidation Term Paper

Article Summary about acqusition and consolidation - Term Paper ExampleAcquisition aims at building on strong charge or weak point of the subsidiary or parent familiarity. The acquisition can be retained or discarded depending on the performance. An evaluation on processes and how they are performing is done, and a decision is made.Consolidation is the process of combining the financial statements of a parent company as amalgamated financial statements. It is indispensable for the parent company which is independent to control the subsidiary which is not independent through financial operations. This is shown when financial operations of the parent company are consolidate to the subsidiary in a financial statement. The purpose of an acquisition is for it to be successful by achieving more rapidly and gainful growth than ordinary. This can only when be seen if a detailed consolidated financial statement is outlined.The article on Google acquiring Buffer-Box http//news.cnet.com/8 301-1023_3-57556528-93/google-acquires-bufferbox-provider-of-delivery-lockers/ get out be the case study. Google is a multinational company which provides internet-related products and services. While, Buffer-Box is an on-line pick up site for goods and services bought online.Most e-commerce operations for Google are in Waterloo which is where most of its online shopping functions are assembled. Therefore, by acquiring Buffer-Box Google will add to its mobile shopping sector. Buffer-Box, on the other hand, fights the challenge of low customer base and gets to leverage Googles resources to grow their business.In preparing a consolidated financial statement for the parenting company, Google and the subsidiary Buffer-Box, needs to gather the necessary paper work on cash, accounts payable and inventory. In order to avoid double-counting when making diary entries, Google should not include transactions to the subsidiary. The statement should reflect incorporated cash flow showing sales , opening and closing