Purchase Acquisition


Also found in: Dictionary.
Related to Purchase Acquisition: Bargain Purchase, Purchase Accounting Method

Purchase Acquisition

In accounting, a way of recording a merger or acquisition in which the acquiring company treats the target company like an asset such as equipment or stock. That is, in a purchase acquisition, the acquiring company simply adds the fair market value of the target company's assets to its balance sheet. If the acquisition cost more than the fair market value, the excess is recorded as goodwill. Purchase acquisition is less common than pooling-of-interests, because goodwill is recorded against future earnings, reducing the company's profit.
References in periodicals archive ?
Contract awarded for documents of direct purchase acquisition of medical equipment for surgical hospital solola
purchase Acquisition of maintaining green spaces in Unions of Parishes of Montijo-Afonsoeiro, Watchtower-Alto-Estanqueiro Jardia Major Trouble and services.
purchase Acquisition of surveillance services - human and remote.
purchase Acquisition of personal protective structural fire-fighting equipment for the Fire Brigade Regiment Lisbon: 850 helmets, cogulas, suits (jackets and pants), gloves and boots.
purchase Acquisition of Material diverse w / LabA[bar].
purchase Acquisition of land mobile service, the link that allows the integration of fixed-mobile~s SMS platform and mobile broadband services, including equipment and covering tariffs for Tourism of Portugal.
purchase Acquisition of the collection of municipal solid waste in the City of Tarouca and street cleaning area in the city of Tarouca services.