Explain how purchase accounting is implemented in a merger. Does the accounting profession now require this method?

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Explain how purchase accounting is implemented in a merger. Does the accounting profession now require this method? How is any premium that the acquiring firm paid over the acquired firm’s book value treated subsequent to a merger?

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Intermediate Financial Management

ISBN: 978-1111021573

10th Edition

Authors: Brigham, Daves

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Question Posted: Feb 02, 2012 07:03 AM

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Explain how purchase accounting is implemented in a merger. Does the accounting profession now require this method?

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With purchase accounting the targets assets are appraised and are then put on the acquirers books at their appraised value Often the actual price paid ...View the full answer

Intermediate Financial Management

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