- noun a way of presenting the accounts of a newly acquired company within the group accounts, so as to show it in the best possible light
- noun the method of preparing group accounts in which the business combination meets the strict criteria necessary for such accounting. merger accounting seeks to treat the combining entities as if they had always been combined. The carrying values of their assets and liabilities do not need to be adjusted to fair value on consolidation. The results and cash flows of all the combining entities are brought into the group accounts from the beginning of the financial year in which the combination occurred. The corresponding figures are restated.