No, this isn’t a term used to justify your latest shopping binge. (Don’t you wish.)
Acquisition accounting is a structured system of checks and balances. If your business buys another business, you must account for what you’ve bought. Otherwise, you’re in deep doo-doo.
In acquisition accounting, this is done by way of the Generally Accepted Accounting Principles (GAAP), which is a system set up by the smarty pants out there to keep businesses honest, ethical, and standards-based. When it comes to acquisition accounting, businesses must analyze and record the fair market value of a whole bunch of complex things. These include: tangible assets and liabilities (inventory, land, buildings, etc.), intangible assets (intellectual property that the company owns, like patents and copyrights), non-controlling interest, and consideration paid (how a selling business is paid by the acquirer). Once these steps are complete, the potential amount gained by the sale is measured.
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Finance: What is pooling: investment/int...3 Views
Finance allah shmoop what is pooling Well it's aggregating no
no aggregating yeah Throwing in cash together partnering pooling interests
in an investment simply refers to two or more players
getting together to invest their money in whatever form mutual
funds are are pooled investment So our index funds hedge
fund bond funds etfs reads mlps any uh pretty much
and well every other investment vehicle that can scale to
allow for two or twenty or two million investors to
all come together and invest well Why would people want
to do this scale or rather synergies of costs from
scale Whether you have one investor or ten thousand you
need to file papers and there are usually pretty much
always lawyers involved and accountants and other wall street gum
sucking gadflies and the marginal additional cost of servicing ten
thousand pooled investors is only somewhat more than servicing won
So in many cases pooling makes a lot of sense
when investors interests are generally aligned and when they're not 00:01:07.229 --> [endTime] around there's trouble
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