PURCHASE METHOD


Meaning of PURCHASE METHOD in English

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.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.