Purchase Acquisition

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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 ?
Purchase methods: Purchase (investment) and lease with purchase option (loa).
"For their own travel comfort we recommend passengers to secure a seat on time although most ZSSK trains do not have obligatory seat reservations," board member and marketing manager of ZSSK, Karol Martinek, explained.ZSSK also recommends passengers to use alternative purchase methods, like advance ticket sales and the internet, to avoid queues at ticket offices.
The regulations encompass the eligibility criteria for buy-back, like maintaining the minimum paid-up capital and free float, authorization of the purchase with the approval by the members of the purchasing company by way of special resolution, the purchase methods, appointment of the manager to purchase and procedure for setting the purchase price.
While customers view displayed vehicles, sales staff will be able to provide them with estimates, detailed product descriptions, and explanatory videos, and propose optimal purchase methods.
DB, Throckley, Newcastle A spokesman for the Metro Radio Arena said: "Tickets are always sold in the overall fairest way, ie, all tickets are put on sale at the same time on a first-come first-served basis across all purchase methods - it is personal preference how the public seek to purchase (Arena, hotline, internet) depending on their own circumstances.
A new initiative from ATandT announced, aims to bring the relationship betweenmobile phone and the user's purchase methods. The telecom giant has partnered with mobile-payment companies Boku,BilltoMobile and Zong to let ATandT subscribers use their mobile phone number to purchase downloadable music, films, news items,in-app goods, and other digitally distributed items rather than a credit card number or Web-based payment option like eBay's(NASDAQ: EBAY PayPalservice).
This tracking service will offer information about who is buying cookware, bakeware, cutlery, dinnerware, beverageware and flatware categories, including where they are purchased, primary reasons for purchase, preferred purchase methods, and more.
Differential Market Reaction to Pooling and Purchase Methods. The Accounting Review, July, 696709.
Of 180 transactions greater than $50m completed in 1998, 67% used pooling as opposed to purchase methods, according to Securities Data Corp and Hambrecht & Quist.
Provide access to the system concurrently by multiple users to purchase tickets by all purchase methods, onsite, mobile, and telephone ticket sales.
The study of business combination methods resulted in a Position Paper that communicated the groups' recommendation that all business combinations should be accounted for by the purchase method.
It is important to note that this variable directly accomplishes the purpose of testing the null hypothesis (H0) as the relatively low future earnings of firms using the purchase method are the primary reason for expecting higher abnormal returns for firms using the pooling method.