acquisition accounting

noun

1. an accounting procedure in which the assets of a company that has recently been taken over are changed from the book value to the fair market value

Example Sentences

Stir in some shady acquisition accounting, billions in debt, $726 million in hidden employee stock option liabilities, aggressive insider selling and it is hard to argue that anyone should own this stock.

From Forbes

“Whenever you see a company claim earnings synergies when buying another company and then write down its net assets to below zero, you have to say either that company never earned money or you’re being overly aggressive in your acquisition accounting,” Mr. Chanos said.

From New York Times