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Running Head: Accounting standards for business consolidations
Accounting standards for business consolidations
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ACC 407
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Business Consolidation
Accounting standards for business consolidations
In competing market it is very common for one business to merge with another one. In
order to survive in this rivalry marketplace, Companies need to expand business to the most
profitable capacity. No matter what kind of reasons for company seeking extension under the
ownership, the main one is to track potential profit. Today’s business environment Financial
Accounting Standards Board (FASB), one of regulators represented concepts related with
business combinations. Below is my briefly understanding of accounting standards of business
combination.
What is the history of account for business combinations? How many businesses are
consolidated with each other? Companies often learn that entry into new product areas or
geographic regions is more easily accomplished by acquiring or combining with other companies
than through internal expansion. For example, SBC Communications, a major
telecommunications company and one of the “Baby Bells,” significantly increased its service
area by combining with pacific Telesis and Ameritech, later acquiring AT&T ( and adopting its
name), and subsequently combining with BellSouth. Moreover, Cingular Wireless, the largest
provider of mobile wireless communications in the United States and now part of AT&T, was
operated as a joint venture of AT&T (Baker, R. E., Christensen, T., & Cottrell, D. (2011)).
AT&T was entering new business market and providing more kinds of service by merging.
Owing to the poor economic status quo, the companies seek for surviving and combining during
2007 2008.
The most common of internal expansion are: split off occurs when the ownership of
newly created or existing subsidiary is distributed to the parent’s stockholders without the
stockholders surrendering any of their stock in the parent company. The split off occurs when

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 Accounting standards for business consolidations XXXX ACC 407 Your name Date Accounting standards for business consolidations In competing market it is very common for one business to merge with another one. In order to survive in this rivalry marketplace, Companies need to expand business to the most profitable capacity. No matter what kind of reasons for company seeking extension under the ownership, the main one is to track potential profit. Today’s business environment Financial Accounting Standards Board (FASB), one of regulators represented concepts related with business combinations. Below is my briefly understanding of accounting standards of business combination. What is the history of account for business combinations? How many businesses are consolidated with each other? Companies often learn that entry into new product areas or geographic regions is more easily accomplished by acquiring or combining with other companies than through internal expansion. For example, SBC Communications, a major telecommunications company and one of the “Baby Bells,” significantly increased its service area by combining with pacific Telesis and Ameritech, later acquiring AT&T ( and adopting its name), and subsequently combining with BellSouth. Moreover, Cingular Wireless, the largest provider of mobile wireless communications in the United States and now part of AT&T, was operated as a joint venture of AT&T (Baker, R. E., Christensen, T., & Cottrel ...
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