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managerial accounting In periods of a heated economy in the 1980s, CHNG had a fourth level and a fifth level. However, after years of reorganization

managerial accounting In periods of a heated economy in the 1980s, CHNG had a fourth level and a fifth level. However, after years of reorganization and improvement, it now has three levels. CHNG uses the equity method to record its investments; it also prepares consolidated financial statements. Member companies manage their investments and have the right to make decisions according to the shareholder's structure. They also implement the management principles of the core enterprise. Previously, the core enterprise considered giving up its close control of its subsidiaries to control through two financial statements (Balance Sheet and Income Statement) and one person (the general manager). Later, they found that this kind of "after the fact" control was highly risky because of the irreversible loss incurred by incorrect decisions. Presently, CHNG maintains both flexibility and necessary control over its subsidiaries.

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