Acquisition Accounting and Purchase Methods

Business-combination accounting methods used to record acquisitions, purchase allocations, and predecessor consolidation approaches.

These pages group closely related accounting concepts for finance readers who use financial statements, cost data, tax accounting, leases, receivables, inventory, and valuation adjustments in analysis. The subsection keeps the sidebar focused without duplicating the generated child-page navigation.

In this section

• Acquisition Accounting: Procedures for Company Takeover
  The accounting procedures followed when one company is taken over by another, including the allocation of the fair value of purchase consideration, and the treatment of goodwill.
• Acquisition Method: Accounting in Business Combinations
  The acquisition method is the current method for accounting in business combinations, focusing on recognizing the fair value of assets and liabilities.
• Pooling of Interests: Combining Financial Statements in Mergers
  The Pooling of Interests method is a historical accounting practice for mergers where the balance sheets of the two companies are combined without revaluing the assets and liabilities.
• Purchase Method: Accounting for Business Combinations
  An in-depth explanation of the Purchase Method, an accounting approach for business combinations used in the USA. The method involves recognizing net assets at their fair value and recording any excess purchase price as goodwill.