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hello everyone and now its time to move forward in our journey and start talking about the consolidation of financial statements the previous lecture Chapter one talked about the equity method and the equity method was appropriate when you would not consolidate your financial statements and there are elements that are have to be present to indicate that you do need to now consolidate as a single entity the financial statements of more than one corporation so the book is going to take us through this slowly and were gonna crawl before we walk so to speak and so were starting out with chapter two and then as we get into chapters three four and five the waters will get a little more murky a little more complicated but well navigate that and and once we have these foundational principles down it wont seem so bad so lets get get cracking on Chapter two business combinations most organizations large and small hold some ownership in another company its very common and you have to - co