acquisition accounting
A method of accounting whereby the buyer includes the acquired identifiable assets and liabilities in its balance sheet at their fair value at the date of acquisition; profits (or losses) generated by the acquired business are profit and loss account only from the date of acquisition; and the difference between the fair value of the consideration (and any deferred consideration) and the fair value of the net assets acquired is accounted for as purchased goodwill.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • acquisition accounting — noun An accounting procedure in which a company s assets are changed from the book value to the fair market value following a takeover • • • Main Entry: ↑acquire …   Useful english dictionary

  • acquisition accounting — The accounting procedures followed when one company is taken over by another. The fair value of the purchase consideration should, for the purpose of consolidated financial statements, be allocated between the underlying net tangible and… …   Accounting dictionary

  • acquisition accounting — The accounting procedures followed when one company is taken over by another. The fair value of the purchase consideration should, for the purpose of consolidated financial statements, be allocated between the underlying net tangible and… …   Big dictionary of business and management

  • Acquisition Accounting — A set of formal guidelines describing how assets, liabilities, noncontrolling interest and goodwill of a target company must be reported by a purchasing company on its Consolidated Statement of Financial Position. With acquisition accounting the… …   Investment dictionary

  • acquisition accounting — noun a procedure in accounting in which the value of the assets of a company is changed from book to fair market level after a takeover …   English new terms dictionary

  • Acquisition Accounting — ⇡ Purchase Methode …   Lexikon der Economics

  • acquisition accounting — /ˌækwɪ zɪʃ(ə)n əˌkaυntɪŋ/ noun a full consolidation, where the assets of a subsidiary company which has been purchased are included in the parent company’s balance sheet, and the premium paid for the goodwill is written off against the year’s… …   Dictionary of banking and finance

  • accounting — /euh kown ting/, n. 1. the theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc.… …   Universalium

  • Accounting identity — In finance and economics, an accounting identity is an equality that must be true regardless of the value of its variables, or a statement that by definition (or construction) must be true. [ Principles of Macroeconomics , Mankiw et al., pp. 211… …   Wikipedia

  • acquisition cost — Refers to the price (including the closing costs) to purchase another company or property. Bloomberg Financial Dictionary In the context of investments, refers to price plus brokerage commissions, of a security, or the sales charge applied to… …   Financial and business terms

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