Home >  Blossary: Finance Investment  >  Term: Purchase Method
Purchase Method

A merger accounting treatment whereby a buyer purchases the assets (and liability obligations) of a company at their market price and then records the difference between the purchase price and the book value of the assets as goodwill. This goodwill need not be amortized but must be valued annually and any decreases or increases in value must be reflected in the buyer's financial statements.

0 0

Finance & Investment

Category: Business

Total terms: 319

Kūrėjas

  • kirb
  •  (Bronze) 304 points
  • 100% positive feedback
© 2025 CSOFT International, Ltd.