deceases assets by amount of cash paid inc equity by same amount?
what are you purchasing?
why would equity be affected? unless you buy less than BV
acquisition from purchase vs pooling
are you buying a lime soda?
purchasing vs pooling. remember assets are marked up to market value so assets and equity are going to be higher under purchase than pooling, ALSO… the higher market values lead to increased depreciation which leads to lower Net Income under the Purchase method. Pooling is also no longer allowed so why the %)$% should we need to know anything about it!!!
selling
so add mv of co less cashed paid to assets?
im going to go ahead and take the physical challenge
> Pooling is also no longer allowed so why the %)$% > should we need to know anything about it?!?!?! because companies have had their balance sheets restated using pooling so i think you can still find it on current balance sheets. thats another things to remember for pooling. balance sheet is restated at book value, wheras for purchasing its marked up to fair value. so all your profitibility and leverage ratios will be better for pooling.
purchase works from the date of acquisition - so if the company acquisition was done say on Jun 30 - Depreciation etc. would be for 1/2 a year with the new asset base at fair value. pooling causes restatement so it is for ever before. and at book value of the new asset base.
cpk123 thanks that helps