Wiley GAAP 2008

Definitions of Terms

Accounting consolidation	The process of combining the financial statements of a parent company and one or more legally separate and distinct subsidiaries.
Acquisition	One enterprise pays cash, or issues stock or debt, for all or part of the voting stock of another enterprise. The acquired enterprise remains intact as a separate legal entity. The parent‐subsidiary relationship is accounted for as a purchase, and it is referred to as an acquisition.
Combination	Any transaction whereby one enterprise obtains control over the assets and properties of another enterprise, regardless of the resulting form of the enterprise emerging from the combination transaction.
Combined financial statements	Financial statements presenting the financial position and/or results of operations of legally separate entities, related by common ownership, as if they were a single entity.
Consolidated financial statements	Consolidated statements presenting, primarily for the benefit of the shareholders and creditors of the parent company, the results of operations and the financial position of a parent company and its subsidiaries essentially as if the group were a single enterprise with one or more branches or divisions.
Consolidation	A new enterprise is formed to acquire two or more other enterprises through an exchange of voting stock. The acquired enterprises then cease to exist as separate legal entities.
Control	Generally, the ability of one entity to direct the activities of another, so as to ...