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.

Mentioned in ?

References in periodicals archive ?

The company reported a net loss from continuing operations of USD55m, including purchase accounting and transaction-related costs.

Tronox Holdings reports Q2 2019 financial results

Mastercard expects the transaction to be dilutive for up to 24 months after the deal closes, primarily related to purchase accounting and integration related costs.

MasterCard to acquire majority of corporate services business of Nets for $3.19B

* Consolidated reported operating profit decreased -15.2% to 205.0 billion yen, and consolidated reported EPS declined -52.6% to 113 yen per share, mainly impacted by significant non-cash purchase accounting expenses.

Takeda Pharmaceutical Company Limited

Previously, Zumbo has led and managed purchase accounting and financial due diligence for 27 M&A transactions and related integrations.

L&R Distributors appoints Craig Zumbo as CFO

Thor expects the transaction to be accretive to earnings in the first year, before taking into account anticipated synergies, purchase accounting adjustments and transaction-related expenses.

Deal snapshot: THOR INDUSTRIES CLOSES ACQUISITION OF ERWIN HYMER GROUP TO CREATE PRESENCE IN EUROPEAN RV MARKET

Excluding purchase accounting yield adjustments, the net interest margin would have been 8 basis points lower, or 3.39%, for the three months ended March 31, 2018.

United Community Financial Corp. announces net income of $8.6m

"We are in the preliminary phase of the purchase accounting process, including obtaining third-party valuations of certain tangible and intangible assets acquired.

Belden/Grass Valley acquires SAM for USD 94.2m

Net interest income was positively impacted by purchase accounting accretion in each of the periods totaling USD 137,000 in the first quarter of 2017, USD 114,000 in the first quarter of 2016 and USD 187,000 in the fourth quarter of 2016.

Pacific Commerce Bancorp net interest income up YoY

Tender are invited for Purchase Accounting Services For The State Educational Inspectorate Received Payment On A Monthly Invoice For One Year.

Purchase Accounting Services For The State Educational Inspectorate Received Payment On A Monthly Invoice For One Year

As part of the purchase accounting, the deferred revenue would be adjusted to fair value, which may be somewhere between $0 and $80, most likely closer to $0.

Beware of disappearing revenue in an acquisition

Percentage of accounting-related securities class action cases that cited a particular issue 2014 2013 Internal controls 58% 70% Revenue recognition 38% 39% Other 32% 26% Understanding of liabilites & expenses 30% 15% Overstatement of assets 21% 26% Estimates 15% 20% Purchase accounting 6% 13% Source: PricewaterhouseCoppers Note: Table made from bar graph.

Securities

Its full-year 2014 net revenue is expected to be approximately USD40m (excluding any potential write down of deferred revenue resulting from purchase accounting adjustments), of which about 75% should be derived from SaaS analytics tools generating highly-recurring subscription fees.