Business Combinations

China have set up large Hypermarkets where most of their physical presence Is obtained, and are currently opening a few express stores and online sites.

FASB 's ASC Topic 805 contains the most up-to-date standards for reporting business combinations transactions. As defined in ASC Topics 805, a business combination occurs when control is obtained over one or more businesses. Control may be obtained by direct acquisition of the assets and liabilities of the acquired or by obtaining a controlling interest in the voting shares of the acquired company.

For example: Two firms doing the bakery business merged and expanded their business in bakery.

A merger is basically a deal that unites two existing companies into one company. This is usually done to expand a company’s reach, expansion into new segments or simply to gain market share. There are different types of mergers that exist as a result of the different reasons that companies might have to merge. The 5 main types include:

1. When a business, part of a business or employing organisation is merged with of taken over by another employer

there are three sorts of mergers: horizontal mergers, vertical mergers and combined. A horizontal merger is an amalgamation between two firms possibly dynamic in similar market at similar level of activity e.g. between two insurance firms whnventory networkile a vertical merger includes firms working at various levels of chain of supply e.g. an insurance firm obtaining a

1. Which of the following situations best describes a business combination to be accounted for as a statutory merger?

It is proper to present a business definition of merger as it found on legal reference with the ultimate goal in the pursuing of an explanation on which this paper intents to present. A merger in accordance with the textbook is legally defined as a contractual and statuary process in which the (surviving corporation) acquires all the assets and liabilities of another corporation (the merged corporation). The definition go even farther to involve and clarify about what happen to shares by explaining the following; “the shareholders of the merged corporation either are paid for their share or receive the shares of the surviving corporation”. But in simple terms is my attempt to define as the product or birth of a corporation on which

The business-level strategy end goal is to combine all of the component capabilities necessary to bring a product or service to the market with as many core competencies as possible, with as few weak activities as possible, in search of competitive advantage (South University Online, 2016, para. 4). In order to meet these requirements complementary strategic alliances are the most effective approach. Complementary strategic alliances are used in order for firms to share some of their resources and capabilities in complementary ways in order to create a competitive advantage (Hitt et al., 2015, p.271). This is the best strategy for business- level because these alliances allow firms to minimize risk and market issues. This is done by the firm having more access to supplies through the

A horizontal merger is a merger between companies which operate in the same business field and they share the same product lines as well as markets. The obvious result of this deal is the expansion in market share, reduction in fixed costs and increase the efficiency of distribution channel and logistics. Usually, horizontal mergers are common in the industries where competition is intensive and the potential gains of market share are

Quartet Enterprises is a business primarily set up to import confectionary and whole sale product to large and small chain stores and super markets around Australia. It consists of four partners with equal equity commitments and entitlements. Our first product released in the market will be Stride chewing gum a proven success in the United States of America.

Many mergers tend to fail and many others succeed. A merger is the combining of assets and operations, usually between two similar sized companies, in an agreement to join together. Mergers can cause bankruptcy, job losses, less choices, and even a breakup. On the other hand, they have many advantages such as, increased market share, lower cost of production, and higher competitiveness. Most mergers can be highly risky but with the presence of knowledge and intuition they can be successful. One of the most successful mergers is the merger of Disney and Pixar.

Coca Cola is a soft fizzy drink sold in every store throughout the world. It is produced by The Coca Cola Company of Atlanta in Georgia, and is often called as Coke.

Consolidation is presenting one set of financial statements of a reporting entity (the parent company) and its subsidiaries. Consolidation is required when one business entity has a controlling financial interest in one or more other business entities. (Schroeder, Clark, Cathey; 2011) Discussed are the two prominent theories of consolidation, entity theory and parent company theory. Covered will be the basics of each theory and any complex issues will be discussed upon necessity.

In merger: The combining of two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stocks. Two companies become one, decison is mutual. They are not idependent anymore