Purchase Acquisition

(redirected from acquisition accounting)
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Related to acquisition accounting: Negative Goodwill

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 ?
0 million decrease in charges for non-cash fair value acquisition accounting adjustments related to the MacAndrews Acquisition.
Excluding the impact of acquisition accounting, production increased 173,235 BOE, or 816% in 2011.
Excludes the effects of intercompany eliminations of revenue from Level 3 and acquisition accounting adjustments associated with the acquisition of Global Crossing by Level 3 which reduced as reported Invest and Grow Revenues by $13 million and Wholesale Voice Services and Other Revenues by $3 million for the fourth quarter 2011 and full year 2011.
Because of the complexities of reverse acquisition accounting, it is not meaningful to compare post-acquisition results of operations with pre-acquisition results.
As a result of the reverse acquisition accounting required by the transaction with Capco Resources, Inc.
08 per share for acquisition accounting adjustments and the relocation of the corporate headquarters to Charlotte, N.
09 unfavorable impact associated with Raytheon|Websense (RW) acquisition accounting adjustments discussed in further detail below.
8226; M&A due diligence and acquisition accounting assistance including purchase price allocation assistance and valuation reports.
Contract notice: Kouvola city and its major subsidiaries auditing services and acquisition accounting for 2013-2016.
In Step 2, the RU's fair value is allocated to its assets and liabilities following acquisition accounting procedures to determine the implied fair value of goodwill.
Because of the potential impact of the recorded business combination on post-acquisition earnings, the acquiring company should develop an acquisition accounting forecast to estimate the income statement effects.
Our results have been reported using the reverse acquisition accounting method

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