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Excess of Cost
Excess of cost refers to the situation where the purchase price of an acquired company exceeds the sum of the fair value of its identifiable tangible and intangible assets.
Book Value
The company's assets' total worth after subtracting its debts, frequently utilized to determine whether a stock is priced too low or too high.
Fair Value
The financial receipts from a sale of an asset or the liabilities' transfer expense in a transaction that is orderly and involves market participants at the time allocated for measurement.
Equity Method
An accounting procedure used for recording investments in associated companies where the investor has significant influence but not control.
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