PURCHASE METHOD Definition

Bookmark and Share

PURCHASE METHOD is accounting for an acquisition using market value for the consolidation of the two entities` net assets on the balance sheet. Generally, depreciation/amortization will increase for this method (due to the creation of goodwill) compared to the POOLING OF INTEREST METHOD resulting in lower net income.

Learn new Accounting Terms

REICHSMARK is a currency of Germany.

PRIVATE LEDGER see LEDGER.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.