acquisition accounting definition

acquisition accounting

Procedure adopted in preparation of the consolidated financial statement of an acquiring and the acquired firm. The purchase price of the acquired firm is allocated between its net tangible and intangible assets (such as copyrights, patents, trademarks) on the basis of their fair market value. Any resulting difference (acquisition adjustment) is allocated to goodwill.

acquisition accounting is in the Accounting & Auditing, Banking, Commerce & Finance and Investing subjects.

acquisition accounting appears in the definition of the following term: purchase acquisition

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