Article Summary about acqusition and consolidation Term Paper

Article Summary about acqusition and integration - Term Paper ExampleAcquisition aims at building on strong point or weak point of the subsidiary or conjure up company. The acquirement can be retained or discarded depending on the performance. An evaluation on military operationes and how they are performing is done, and a decision is made.Consolidation is the process of combining the financial statements of a parent company as consolidated financial statements. It is needed for the parent company which is independent to control the subsidiary which is non independent through financial trading operations. This is shown when financial operations of the parent company are consolidated to the subsidiary in a financial statement. The purpose of an acquisition is for it to be successful by achieving more rapidly and gainful growth than ordinary. This can only be seen if a detailed consolidated financial statement is outlined.The article on Google acquiring Buffer-Box http//news.cnet. com/8301-1023_3-57556528-93/google-acquires-bufferbox-provider-of-delivery-lockers/ will be the case study. Google is a multinational company which provides internet-related products and services. While, Buffer-Box is an on-line pick up site for goods and services bought online. just about e-commerce operations for Google are in Waterloo which is where most of its online shopping functions are assembled. Therefore, by acquiring Buffer-Box Google will bring to its mobile shopping sector. Buffer-Box, on the other hand, fights the challenge of low customer base and gets to leverage Googles resources to grow their business.In preparing a consolidated financial statement for the parenting company, Google and the subsidiary Buffer-Box, needs to gather the necessary paper work on cash, accounts payable and inventory. In order to avoid double-counting when making journal entries, Google should not include transactions to the subsidiary. The statement should reflect incorporated cash flow s howing sales, opening and climax