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Financial Accounting For Dummies by Maire Loughran

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Chapter 17

Accounting for Business Combinations

In This Chapter

arrow Defining basic terms and classifying business combinations

arrow Using the right accounting method to recognize a business combination

arrow Being aware of common merger and acquisition issues

arrow Reporting investments in equities

arrow Staying current with business combination regulations

This chapter discusses an advanced financial accounting topic: business combinations. Although your introductory financial accounting class may not touch on this subject, outside of the classroom, most financial accountants specialize in this area because the rules are quite detailed. So if you’re debating whether a career in financial accounting is for you, you may want to learn a bit about this topic now. (You’ll certainly encounter it in a more advanced financial accounting course.)

Financial accountants must get information related to business combinations right because people using the information (such as potential investors) depend on it to get the ...

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