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Stellar CPA Consulting, Inc.: Impact Of Shared-Based Payments

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Stellar CPA Consulting, Inc.: Impact Of Shared-Based Payments
To: Senior Tax Manager, Stellar CPA Consulting, Inc.
From: Team D, Stellar CPA Consulting, Inc.
Date: August 30, 2010
Subject: Impact of Shared-Based Payments and Special Purpose Entities on Financial Statements and Audits Economies of scales have created consolidation of ventures between companies. As a result of mergers, shared-based payments and special purpose entities (SPEs) have become prevalent in business. In addition to strengthening competition of the combined companies, several goals are met such as tax reductions, growth and diversification, a larger financial base, and increase profits. Generally Accepted Accounting Principles (GAAP) does not require separate financial statements of the companies merged. SFAS No.
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