When is consolidation not required?

Q: Why are CMOs overcollateralized?

A: CMO is the abbreviation used for collateralized mortgage obligation. It uses collaterals which are…

Q: What is proportionate consolidation? and how will it affect the JV?

A: The proportionate consolidation is the method in which the company reports the assets and…

Q: What is internalization?

A: Internalization: It happens when an individual directs an exchange itself, as opposed to sending it…

Q: what is disinvestment ?

A: Disinvestment:  Disinvestment means selling off the assets such as manufacturing plant, a division,…

Q: How does the change in the PBO occur?

A: Projected Benefit Obligation:   It is a pension concept in accounting as it is the present value of…

Q: What benefits result from decentralization?

A:

Q: What are some motives for divestitures?

A: The question is based on the concept of divestiture strategy, which is used by company to overcome…

Q: What are your views on dedollarization?

A: Dedollarisation is the process of substituting the US dollar currency which is used in trading oil…

Q: What does the elimination process accomplish?

A: Intercompany elimination:   Intercompany elimination refers to the process in which the transactions…

Q: Should VAS be completely replaced by IFRS? Why/ Why not?

A: IFRS stands for International Financial Standards where as VAS stands for Vietnamese Accounting…

Q: What Constitutes a Discontinued Operation?

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: When is a GAAP departure appropriate?

A: Definition:   Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: How do fixed asset systems differ from purchases systems?

A: Definition: Purchase system: The identification and procurement of the inventory needs for the…

Q: why would using a single WACC not be appropriate for valuing an LBO?

A: Leveraged Buyout (LBO) It is an acquisition in which the primary source of consideration is debt.…

Q: How do CDOs differ from CMBSs?

A: Difference between CDO and CMBS is that CMBS is a subset of CDO. In CMBS the underlying assets are…

Q: What is horizontal merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

Q: What are some types of divestitures?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: How suboptimization can occur?

A: Sub-optimisation:   It refers to the level of output that can arise from any inefficient or…

Q: What are the problems caused by lack of integration? Expalin

A: Enterprise resource planning (ERP) system: It is the combined management of different activities…

Q: Define divestiture

A: Introduction: A divestiture might happen when a business unit is thought to be redundant afterward…

Q: Difference between Internal reconstruction and External reconstruction (Merger and acquisition)?

A: Definition: Acquisition: The acquisition refers to the business combination when one entity or…

Q: What is the OLAP operation called consolidation?

A:

Q: What is merger waves?

A: A merger is an agreement under which two existing companies unite into one new company. Mergers are…

Q: What are some reasons for the current merger wave?

A: Merger wave can be defined as the sequence of time period where the probability of occurring mergers…

Q: u sell a fixed asset for $75,000 when its book value is $80,000. If your company's marginal t sh…

A: Given, Sale value = $75,000 Book value = $80,000 Tax rate = 21%

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.