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04-Sep-2017 09:21

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Impairment loss : An impairment loss occurs when there is a decline in the value of the investment other than temporary.When the amount of stock purchased is between 20% and 50% of the common stock outstanding, the purchasing company’s influence over the acquired company is often significant.The deciding factor, however, is significant influence.

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The taxation term of consolidation refers to the treatment of a group of companies and other entities as one entity for tax purposes.

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