Purchase Method

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.

Related posts:

1. Flow-Through Method
2. Normalizing Method
3. Pooling of Interests
4. Current Rate Method
5. Direct Estimate Method