Article Summary about acqusition and consolidation Term Paper

Article Summary about acqusition and consolidation - Term Paper Example Acquisition aims at building on strong point or weak point of the subsidiary or parent company. The acquisition can be retained or discarded depending on the performance. An evaluation on processes 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 necessary for the parent company which is independent to control the subsidiary which is not independent through financial 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. Most 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 add to its mobile shopping sector. Buffer-Box, on the other hand, fights the challenge of low customer base and gets to leverage Google’s 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 showing sales, opening and closing

Business formation and purpose Essay Example | Topics and Well Written Essays - 2000 words

Business formation and purpose - Essay Example BBC Worldwide has a number of other commercial ventures. Profits from these activities are returned to the BBC for investment in new programming and services (BBC, No Date). In the year 1922 by the public opinion, as well as the spectacular growth and popularity of radio in the United States, had attracted more public pressure on the authorities to deny a full service any longer. After five months of deliberation a company to be known as the British Broadcasting Company was to set up eight stations in major cities around the country. Like this the BBC was born. on November 14th 1922, The British Broadcasting Company started daily transmissions by that time more than one million ten-shilling (50p) authorization had been announced. In 1927 the company was restructured as a public corporation -the BBC which is known today- by its founding father, John (later Lord) Reith, but by this time an even newer technology was being developed -television. In 1926 Baird enlisted the aid of Selfridges in London to put on public demonstrations of his equipment., the BBCs official line was that Bairds pictures were well below standard and that they had too little potential for improvement (BBC, No Date). By 1932 the BBC started regular experimental broadcasting. They offered Baird a studio in their newly acquired premises in Portland Place, Britains first dedicated television studio, was housed in the basement of Broadcasting House, and it was from here that Baird continued to experiment and refine the new medium. Competition came from the Electronic and Music Industries (EMI), based in Hayes, Middlesex, where they had been working with the Marconi Company on developing a high definition system. In May of 1934 the British government appointed a committee for setting up a television service followed by the Seldom Report where The BBC was to be