Purchase Method

Filed Under: p by
Purchase Method
Method by which an acquisition is valued in the accounts by using net asset values to consolidate the assets of both entities. Amortization/ depreciation will be greater in this method, decreasing the net income as a consequence when compared with the pooling method.

Recommended for you:

  1. Flow-Through Method
  2. Normalizing Method
  3. Purchase Accounting
  4. Pooling of Interests
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