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Organizations often have complex structures with multiple business or operating units and legal entities with varying degrees of ownership.If your organization comprises more than one business unit or operating entity, you can consolidate these organizations when you report on overall operations, presenting financial statements that accurately describe your financial status.With advances in information and communication technologies, transaction data are being recorded in electronic form, resulting in a variety of research opportunities to examine dyadic interactions.A network consists of a set of nodes connected by ties.

When a consolidating entity controls no more than 50% of the voting rights, there is control if the entity has: Joint control is the power to jointly direct the financial and operating policies of another company with one or more companies that are not included in the consolidation.To gain a complete picture of the entire organization, you combine (consolidate) all the assets and liabilities of each business unit, eliminating intercompany transactions and minority interest relationships by creating consolidation elimination journal entries.You use trees to define the relationships among business units in a consolidation, creating a separate consolidation tree for each configuration.A parent company can operate as a separate corporation apart from its subsidiary companies.Each of these entities reports its own financial statements and operates its own business.

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