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.

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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

Accounting for Income Taxes: Impact of FASB and IASB Domestic and Foreign ESOs, and Purchase Accounting

TEI photographs

My team's job is to figure out how to integrate acquisitions into Microsoft and ensure we properly book the purchase accounting.

Taylor Hawes. (Balance Sheet)

The three engineered materials plant closings will be included as part of the acquisition purchase accounting related to the consolidation of Geon and M.

PolyOne

Ira Zuckerman, an equity analyst with Nutmeg Securities, agreed, saying buyers will simply adjust their price to absorb the impact of purchase accounting.

Broker-Agency Consolidation Picks Up as Reforms Kick In

AOL and Time Warner executives say purchase accounting will enable the new company, AOL Time Warner, to dispose of unproductive assets and conduct stock buybacks.

Everyone out of the pool

The banking industry is very concerned about the loss of poolings because purchase accounting would provide misleading information about prospective net cash inflows for certain types of business combinations," ABA Accounting Committee Chair Mike Hughey said.

CONTROVERSY CONTINUES OVER POOLING OF INTERESTS VS. PURCHASE ACCOUNTING

In the case of purchase accounting, the valuation group must allocate a finite amount, the purchase price, to the assets.

Valuation of intangibles for financial and tax purposes ... or EPS vs. the IRS

Statement 141 on Business Combinations: 1) requires the use of purchase accounting for all business combinations initiated after June 30, 2001; and 2) provides new criteria for determining when intangible assets should be recognized separately from goodwill.

The M&A Game Changes

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.