👉 Reconsolidations are a type of accounting process that involves the consolidation of two or more companies into one entity. In this context, they are often used to reflect transactions where multiple entities are merged into a single entity for financial reporting purposes. Reconsolidations occur when an entity merges with another entity to create a new entity, which is then accounted for in its entirety by that new entity. Reconsolidations can be beneficial for companies that want to consolidate their operations and improve financial statements.
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