Instructions for main discussion post (Around 250 words) Please, write a discussion post about the below topic/Statement. Topic/Statement: Companies pursue intercompany activities for several reasons...

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Please, write a discussion post about the attached topic/Statement.




Instructions for main discussion post (Around 250 words) Please, write a discussion post about the below topic/Statement. Topic/Statement: Companies pursue intercompany activities for several reasons including diversification, expansion, and competitive opportunities and returns. This discussion question considers our analysis and interpretation of these inter-company activities as reflected in financial statements. From an analysis perspective, it may be required to apply analytical adjustments to these disclosures or figures to improve our analysis. When a balance sheet reports a substantial dollar amount for goodwill, discuss what we should be concerned with in our analysis. (1 or 2 Citations needed for main post)
Answered Same DayOct 30, 2021

Answer To: Instructions for main discussion post (Around 250 words) Please, write a discussion post about the...

Kushal answered on Oct 30 2021
155 Votes
Companies generally take two paths for the growth - 1.Organic, 2.Inorganic
In the Organic path, fir
m tries to improve the product lines, product categories, new stores and centers openings to attain growth. Whereas, in the inorganic path, the firm tries to engage into merger and acquisition activities to expedite the growth.
In the M&A transactions, the acquirer firm more often than not pays extra amount than the book value of the net identifiable assets. These assets are reported on the balance sheet and the additional amount is reported as the goodwill which not a...
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