Admas University

Olympia Campus
Department of Accounting & Finance
Individual Assignment II on the course advanced Accounting
By Instructor Dirar Abreha Phone Number: - 0914189646
Last submission June 13/2020
I. Discuss the following terms
1. What is Business combination?
2. Discuss the need (reasons) for business combination.
3. Discuss the types of business combination.
4. Discuss the methods (forms) of business combination.
5. What is the meaning of consolidated Financial Statements?
6. Which financial statement could be consolidated at the date of acquisition?
II. Fill the following blank space with proper Answers
1. Consolidated financial statements can be prepared if the method of business
combination is ______________________________
2. When one company controls another company through direct or indirect ownership
of its voting stock
a. Acquiring company referred to as the___________________.
b. Acquired company referred to as the ___________________.
c. Other shareholders considered ________________________.
d. Parent records interest in subsidiary____________________.
3. When one company acquires the majority voting outstanding stock of another
company then that company will have __________________power.
4. ____________means the possession, direct or indirect, of the power to direct
management and policies of another entity, whether through the ownership of voting
shares.
5. Circumstances when majority-owned subsidiaries should be excluded from the
consolidated statements:
a. ________________________________________
b. ________________________________________
c. ________________________________________
6. Control might be lost for a number of reasons, such as
a. _________________________________________
b. _______________________________________
c. _______________________________________

7. Consolidated Financial Statement Presented primarily for those parties having a long-
run interest in the parent company such as:
a. __________________________
b. _________________________