Meaning PURCHASE METHOD: 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 to the pooling method resulting in lower net income
More terms such as Purchase method in Dictionary P.
- Definition Parallel Shift In The Yield Curve:
- Examples conditions in which the change in the interest rate on all maturities is the same number of basis points. In other words, if the three month T-bill increases 100 basis points (one %), then the 6 purchase method definition.
- Definition Project Financing:
- Examples A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis purchase method explain.
- Definition Premium Raid:
- Examples An attempt to acquire a large portion of a company's stock to gain control by offering stockholders a premium over the market value for their shares purchase method what is.
- Definition Precautionary Motive:
- Examples A desire to hold cash in order to be able to deal effectively with unexpected events that require cash outlay purchase method meaning.
- Definition Precedence:
- Examples system of priorities of trades in an exchange. For example, the highest bid and lowest offer have highest precedence; the first bid or first offer at a price has highest priority, and large orders purchase method abbreviation.
