Merger accounting
From ACT Wiki
Merger accounting regards two or more parties as combining their interests on an equal footing.
The difference that arises on consolidation does not represent goodwill, but is instead added to (or deducted from) reserves.
Merger accounting is not allowed under the relevant international accounting standard IFRS 3 'Business combinations'.
Under UK domestic GAAP merger accounting is required - but under strictly limited circumstances - under FRS 6 'Acquisitions and Mergers'.
