Dr Chan Singh CPA, CFSA, CGMA

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About Dr Chan Singh CPA, CFSA, CGMA

In brief, a business acquisition, from the accounting standpoint, is a transaction in which both the acquiring and acquired company are still left standing as separate entities at the end of the transaction. If the acquiring company spreads the acquisition price over the assets being bought at their fair market value, with any remaining portion of the acquisition price being recorded in a goodwill account, the “purchase method” is used to account the transaction.