Purchase method - 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 with pooling and will result in lower net income.
Purchase method : 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 with pooling and will result in lower net income.
Purchase method