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View Full Version : Acquisition of a new business.


pmbemah
Feb 27, 2010, 12:46 PM
My company just purchased the assets and liabilities of another company. What are the accounting treament for this transaction? How does this transaction affects the financial statements?

ROLCAM
Feb 28, 2010, 04:09 AM
You enter an acqusition journal entry of all the assets and liabilities
In your books.
The financial statement will reflect the addition of the entry in your new balance sheet.