When a company acquires another company and purchase accounting is used, net income is usually lower than that in case of pooling-of-interests, because the cost of goods may be higher as inventory is recorded at market value (besides other reasons).

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When purchase accounting is used, the acquiring company records the acquired company's assets and liabilities at their fair market value. This may result in higher costs of goods sold, and hence lowering the net income compared to pooling-of-interests method.

When a Company Acquires Another Company and Purchase Accounting Is