Purchase accounting

Definition:

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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Own foreign offices

U.S. reporting institutions' parent organizations, branches, and/or majority owned subsidiaries located outside the United States.

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