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Purchase accounting

• Method of accounting for a merger in which the acquirer is treated as having purchased the assets and assumed liabilities of the acquiree, which are all written up or down to their respective fair market values, the difference between the purchase price and the net assets acquired being attributed to goodwill.

 
 Embedded terms in definition
 Acquiree
Acquirer
Assets
Goodwill
Liabilities
Market value
Market
Merger
Net assets
Purchase
 
 Related Terms
 

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