BNET Business Dictionary
Business Definition for: Merger Accounting
- a method of accounting which regards the business combination as the acquisition of one company by another. The identifiable assets and liabilities of the company acquired are included in the consolidated balance sheet at their fair value at the date of acquisition, and its results included in the profit and loss account from the date of acquisition. The difference between the fair value of the consideration given and the fair values of the net assets of the entity acquired is accounted for as goodwill.
Additional Resources
- BURSTING THE MERGER BALLOON?(merger accounting rule)(Brief Article)
- High-tech industry says it would be particularly hard hit by new accounting rule. COULD A MERGER ACCOUNTING rule expected to go into effect next year put an end to the merger mania sweeping corporate America? Opponents of the new rule,...
- Research articles 2000-03-06
- Pooling or purchase: a merger mystery.
- Public merger announcements often state which type of merger accounting, pooling or purchase, has been employed. The choice can strongly influence accounting results, For example, reported earnings are often higher under pooling than purchase accounting. Yet empirical analysis indicates that the higher earnings reports do not fool investors. Why then...
- Research articles 1999-01-01
- FASB PLANS STRICTER RULE ON MERGER ACCOUNTING.
- A proposed U.S. accounting change that could take effect in less than two years is expected to slow the pace of merger and acquisition activity in the property/casualty insurance industry. But there could well be heightened M&A activity between A proposed U.S. accounting change...
- Research articles 1999-05-03
- Bursting the merger balloon?
- Bartholomew, Doug Industry Week 03-06-2000 Bursting the merger balloon? Byline: Bartholomew, Doug Volume: 249 Number: 5 ISSN: 00390895 Publication Date: 03-06-2000 Page: 11 Type: Periodical Language: English High-tech industry says it would be particularly hard HEADNOTE hit by new accounting rule. COULD A MERGER ACCOUNTING...
- Research articles 2000-03-06
- Pooling's demise will raise merger stakes.
- Pooling, an accounting method used by banks when they are undergoing mergers, will soon be disallowed by the Financial Accounting Standards Board. this article forecasts what could happen in the banking industry. The all-but-certain change in merger accounting rules may prompt action sooner than you planned ...
- Research articles 1999-11-01
- New accounting rules could make some mergers less attractive.(FINANCE)(Brief Article)
- New accounting rules could make some mergers less attractive for the companies involved by diluting earnings of the combined entity. The new rules are likely to be implemented in 2006 by FASB, the Financial Accounting Standards Board. It's an effort by the regulator to...
- Research articles 2004-11-24
- The M&A Game Changes.(mergers and acquisitions accounting regulations)
- The FASB has revised the rules for merger accounting, and the result in the short term may be a lot of confusion. It has finally happened: Twenty-five years after its first discussion memorandum on accounting for business combinations and intangibles (Aug. 19, 1976), the...
- Research articles 2001-10-01
- End of the Road Nears for Popular Pooling-of-Interests Merger Accounting
- * THE FINANCIAL Accounting Standards Board's two-year saga to eliminate the pooling-of-interests method of accounting for mergers and acquisitions is expected to end June 2001 with a revised set of generally accepted accounting principles to take effect the subsequent fiscal quarter. Thereafter, only the purchase method of accounting for...
- Research articles 2001-05-01
- Merger Accounting Changes To Eliminate Higher Earnings and Share Price Growth Offered By Pooling Method
- MINNEAPOLIS--BUSINESS WIRE--July 27, 1999-- Companies utilizing the pooling method of accounting for merger transactions had stock prices one year later that were on average 15.7 percentage points higher than companies using the purchase method, according to a new study just released by U.S. Bancorp Piper Jaffray. For the...
- Research articles 1999-07-27
- Merger accounting rules.
- Byline:Joan Pryde Federal regulators still have a long way to go in fixing a controversial accounting standard affecting mergers. Although the Financial Accounting Standards Board FASB said Dec. 6 it had tentatively agreed on how to ease the standard, details are still vague ...
- Research articles 2000-12-14
- Merger accounting MAGIC may disappear
- DRAINED OF "POOLING OF INTERESTS" ACCOUNTING, COMPANIES MAKING ACQUISITIONS MUST VALUE INTANGIBLE ASSETS. STOCK PRICES ARE RISING, BUT CASH IS STILL KING. Cash is real. It's tangible. You need it to pay people who provide your company with labor, supplies, or services. But earnings, an intangible form of income...
- Research articles 2000-01-01
- No Merger.(proposed merger between KPMG Peat Marwick LLP and Ernst and Young LLP)
- The proposed merger between KPMG Peat Marwick LLP, Ernst and Young LLP and their respective Israeli associates has been called off. The merger was to have created the world's largest accounting, auditing and consulting organization overtaking world numThe proposed merger between KPMG Peat Marwick LLP, Ernst and...
- Research articles 1998-03-15
- Deloitte in Andersen merger talks.
- Mar 12, 2002 The Australian Financial Review ABIX via COMTEX -- The global accounting firm, Andersen, is considering a merger with Deloitte Touche Tohmatsu. The merger would also create the world's second-largest accounting firm and reduce the number of global accounting firms from five...
- Research articles 2002-03-11
- Another Big Six Accounting Firm Merger Is in the Works.(Originated from The Miami Herald)
- Oct. 18--The giant accounting firms KPMG Peat Marwick and Ernst & Young were headed to a merger Friday, less than a month after two other Big Six firms agreed to consolidate. The merger, which is expected to be officially announced Monday, ...
- Research articles 1997-10-18
- Pending FASB Rule Topic Of Debate
- The Financial Accounting Standards Board remains in the process of refining the rules regarding two issues of importance to credit unions: available-for-sale investment losses and merger accounting. The Financial Accounting Standards Board remains in the process of refining the rules regarding two issues of importance to credit unions: available-for-sale...
- Research articles 2004-10-04
- Merging accounting firms seem 'complementary.' (Coopers and Lybrand LLP, Price Waterhouse LLP)
- Sometime next year, Detroit might have a new No. 2 accounting firm. Coopers & Lybrand L.L.P. and Price Waterhouse L.L.P. rocked the professional-services world Thursday by announcing a merger that would create the world's largest accounting and conSometime next year, Detroit might have a new No. 2...
- Research articles 1997-09-22
- NCUA Urges FASB To Make Exception For CUs
- The Financial Accounting Standards Board FASB has deferred a decision until at least next year on whether to apply new merger accounting rules to credit unions, a FASB official told The Credit Union Journal last week. The Financial Accounting Standards Board FASB has deferred a decision until at least...
- Research articles 2001-05-28
- Planning a Merger? Your World Gets a Lot Harder Next Week
- If you are on the C-Suite floor or are a director, your world is going to get more complicated next week, especially if you are planning mergers. Yes, I know that things probably couldn't seem any tougher than they are now. But guess what? ...
- Blog posts 2008-12-11
- Merger would produce giant.
- Mar 13, 2002 (The Courier-Mail ABIX via COMTEX) -- A merger between troubled accounting firm Andersen and rival Deloitte Touche Tohmatsu would have major ramifications in Queensland. A merger between the two global giants would create the state's third-largest accounting group, with enough...
- Research articles 2002-03-12
- AUSTRALIAN COMPETITION AND CONSUMER COMMISSION: ACCC not concerned by key accounting bodies' merger.
- M2 PRESSWIRE-18 August 1998-AUSTRALIAN COMPETITION AND CONSUMER COMMISSION: ACCC not concerned by key accounting bodies' merger C1994-98 M2 COMMUNICATIONS LTD RDATE:180898 The Australian Competition and Consumer Commission has decided that there are no competition concerns associated with the proposed merger ...
- Research articles 1998-08-18
