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Reading Financial Reports For Dummies, 4th Edition
book

Reading Financial Reports For Dummies, 4th Edition

by Lita Epstein
April 2022
Beginner content levelBeginner
384 pages
9h 56m
English
For Dummies
Content preview from Reading Financial Reports For Dummies, 4th Edition

Chapter 10

Considering Consolidated Financial Statements

IN THIS CHAPTER

check Understanding consolidation

check Seeing how companies buy companies

check Exploring consolidated financial statements

check Turning to the notes for details

Like couples who marry and work to combine two incomes, two sets of financial obligations, and two ways of managing money, situations get complicated when companies decide to join forces or buy other companies and combine their financial statements. This new arrangement can make it much harder for you to find out how each piece of this new entity performs financially. In this chapter, I discuss how to read the more complex financial reports that arise when companies consolidate.

Getting a Grip on Consolidation

One of the ways businesses grow is buying or merging with other companies. When one company buys another, it gobbles up the new one, which loses its identity. But when firms decide to merge, they usually decide jointly how the new company will operate and how to present the financial statements.

Major corporations that own more than 50 percent of a company create ...

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Publisher Resources

ISBN: 9781119871361Purchase Link