Merger accounting

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.

Relevant accounting standards include IFRS 3, and Section 9 and Section 19 of FRS 102.

See also

• Acquisition accounting
• IFRS 3
• FRS 102
• Merger
• Merger reserve