Purchase accounting

(redirected from Purchase Accounting Method)

Purchase accounting

Method of accounting for a merger that treats the acquirer as having purchased the assets and assumed the liabilities of the acquiree, which are then written up or down to their respective fair market values. The difference between the purchase price and the net assets acquired is attributed to goodwill.

Purchase Accounting

In mergers and acquisitions, a method of accounting that treats the acquiring company as if it bought the assets and assumed the liabilities of the target company; all the assets and liabilities are placed on the acquiring company's balance sheet according to their current market value. Because the purchase price of the target company often exceeds this, pooling-of-assets accounting is more common. See also: Goodwill.
References in periodicals archive ?
However, the restatement caused the net loss for the nine-month period ended December 31, 2002 to increase $177,450 as a result of noncash amortization expenses resulting from using the purchase accounting method to record the UDW Delaware acquisition.
Under FAS 141, companies must use the purchase accounting method for new M&A transactions, since the pooling of interests method has been eliminated.
NEW FASB STANDARDS PROHIBIT the pooling-of-interests method of accounting for business combinations and require a purchase accounting method that does not allow goodwill amortization.
43 shares of Intel stock and the merger will be accounted for using the purchase accounting method.
Community Partners Bancorp acquired The Town Bank on April 1, 2006 in a transaction that was accounted for under the purchase accounting method for financial reporting purposes, with Two River Community Bank as the acquiring entity.
Current management has determined that it is more appropriate to record the acquisition using the purchase accounting method.
Use of the purchase accounting method will also bring the United States in step with other countries, because widespread use of the pooling-of-interests method is a U.
Community Partners acquired The Town Bank on April 1, 2006 in a transaction that was accounted for under the purchase accounting method for financial reporting purposes, with Two River as the acquiring entity.
SonicWALL intends to account for the transaction under the purchase accounting method.
For the fourth quarter of fiscal year 2007 ending May 31, 2007, the company is estimating GAAP revenues of $187 million to $195 million, excluding approximately $1 million of deferred maintenance and services revenue written down under the purchase accounting method used for the Intentia acquisition.
The transaction's purchase price was approximately $35 million and was accounted for under the purchase accounting method.
The transaction is expected to be completed no later than April 30, 2001, and the purchase price of approximately $35 million will be accounted for under the purchase accounting method.