Intercompany Relations

About This Chapter

Because of well-known company names, there is a tendency to think of a company as a single, discrete institution. That is not the case. There are many types of business relationships. Companies merge, acquire other companies, work together on various projects, and invest in other companies. These corporate activities not only involve strategic and managerial decisions, but are also subject to legal, tax, and accounting requirements. In this chapter, we concentrate solely on the accounting requirements.

Several of these business relationships are complex. Sometimes, managers in one company may lack certain competences and remedy these by cooperating with a company that can assist. Such arrangements ...

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