Acquisition accounting

A method of accounting whereby the buyer includes the acquired identifiable assets and liabilities in its balance sheet ( www.practicallaw.com/A35886) at their fair value ( www.practicallaw.com/A36077) at the date of acquisition; profits (or losses) generated by the acquired business are profit and loss account ( www.practicallaw.com/A36715) 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 ( www.practicallaw.com/A36739).

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