One method of accounting for a company merger, in which the balance sheets of...
An accounting method used in the combining of companies simply by adding them together item by item, resulting in a tax-free transaction.
Method of accounting for mergers, in which the financial statements of the companies are combined at their Book Values and Goodwill is not created. Certain technical requirements must be complied with to permit pooling. The alternative is the Purchase Accounting method. A recent pronouncement by FASB is likely to eliminate this type of accounting.
A method of accounting for mergers used prior to 2002. Under this method if certain technical requirements were present the financial statements of the companies were combined at their Book Values, the value of acquired assets was not restated and Goodwill was not created. The alternative was the Purchase Accounting method.
A merger accounting method where the balance sheets of the two merging companies are combined line by line without a tax impact.
An accounting method for reporting acquisitions accomplished through the use of equity. The combined assets of the merged entity are consolidated using book value, as opposed to the purchase method, which uses market value. The merging entities' financial results are combined as though the two entities have always been a single entity.