This book presents an analytical method that helps the user form an opinion about important consequences of a business combination. The effects on profitability and financial position calculated on the basis of consolidated financial statements are in focus. Other corporate activities like strategic alliances with other companies, the acquisition of minority holdings related to these alliances and the disposal of companies belonging to a group are also analyzed.
The most common methods in group accounting are discussed. However, the aim is to provide a general exposition of the issues, since detailed rules tend to change over time and sometimes differ between countries. Simplified numerical examples are used and important issues are illustrated by excerpts from annual reports.
This book is intended for university students in accounting.