Consolidation or amalgamation is the act of merging many entities into one. In business, it often refers to the mergers and acquisitions of many smaller companies into much larger ones. In the context of financial accounting, consolidation refers to the aggregation of financial statements of a group of companies as consolidated financial statements. The transfer of control from one group of owners to another affects the economic interests of many stakeholders, including the shareholders, managers, creditors and customers. Although sole proprietorship is the most common form of business in the Arab world, the corporate form of organization accounts for by far the largest volume of business in the region. The study of the nature of business combination and preparation of consolidated financial statements is the primary concentration of this course. Inter-company transactions such as sales of inventory, assets and bonds complement the consolidated financial statements covered in this course. In addition, another form of inter-company transaction such as branch accounting and joint venture form the final part of this course.