Asked by Bunmi Olaniyi on May 05, 2024
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Currently,mergers in Canada can be accounted for using either the purchase method or the pooling method.
Purchase Method
An accounting method for business combinations where the acquiring company records the assets and liabilities of the acquired company at their fair market values.
Pooling Method
An accounting technique used in mergers and acquisitions where the assets and liabilities of the merging companies are combined using their book values, rather than being re-valued or adjusted.
- Comprehend the accounting methods for mergers and their impact on financial statements.
Verified Answer
Learning Objectives
- Comprehend the accounting methods for mergers and their impact on financial statements.
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