How Does Acquisitive Growth Work?

Due to consolidation accounting (or “Group accounting”) rules, when one company controls another one (from 50% + 1 vote up to full-control of 100%, depending on circumstances), that first company (or the “parent” company) gets to accounting for┬áboth the financial … Continue reading

Smoke, Mirrors & Balance Sheets

“Statements of Financial Position” or, as they used to be called (and I will keep calling them), “Balance Sheets” (BS), are a snapshot view of a business’s assets, liabilities and resulting equity at period end. The resulting equity, net asset … Continue reading