business combination

Dictionary of Accounting Terms for: business combination
business combination

alliance of a company and one or more incorporated or unincorporated businesses into a single accounting entity that then carries on the activities of the separate entities. A usiness combination must be accounted for under the purchase (ACCOUNTING) methodIt does notcover the transfer of a business to a substitute corporation. The business combination date comes before the consolidationdate when consolidated financial statements are prepared.

Dictionary of Business Terms for: business combination
business combination

bringing together a company and one or more incorporated or unincorporated businesses into a single accounting entity that then carries on the activities of the separate entities.

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