Business Combinations and Consolidation Promulgations

Many companies choose to combine or consolidate their companies when they see an opportunity for economic growth. This arrangement could be a joint venture, merger, combination, or a consolidation. While these terms seem similar, they have very different meanings when it comes to financial reporting. Companies will often choose a business combination or consolidation based on the impact it will have on the balance sheets. Since accounting standards and reporting rules vary for combinations and consolidations, choosing one over the other may have a more positive impact on a company's financial reports.

Write a 2- to 4-page paper analyzing how consolidations and business combination promulgations affect off-balance sheet manipulations. Be sure to include research on the development of consolidations and business combination promulgations.