A more thorough explanation:

A business combination is when two or more companies come together to form a single entity for accounting purposes. This can happen in a few different ways:

1. When one company acquires another company
2. When two companies merge to form a new company
3. When two companies combine their assets to form a new company

For example, if Company A buys Company B, they would be considered a business combination. Company A would now include all of the assets and liabilities of Company B, and the two companies would be considered one entity for accounting purposes.

Another example would be if Company C and Company D decided to merge and form a new company, Company E. Company E would be a business combination of Company C and Company D, and would include all of their assets and liabilities.

Overall, a business combination is a way for companies to come together and combine their resources to create a stronger, more competitive entity.