An overview of the art of consolidation [statement of financial position] / Noryati Md Noor

[This article only covers the basic understanding in the preparation of a consolidated statement of financial position within the scope of the course ACC507_Financial Accounting and Reporting; with references to Malaysian Financial Reporting Standard No 3 & 10. References to other MFRSs that are commonly applied in the preparation of the financial statements will not be specifically mentioned]. A business combination occurs when independent businesses combine to form a single unit; the combinations can be horizontal or vertical integration. Horizontal integration is an expansion strategy that involves the acquisition of a business offering similar goods or services at the same level of the value chain in the same industry.