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General Accounting Discussions: Purchase Accounting Adjustments

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    • CommentAuthorwiinc1
    • CommentTimeDec 10th 2007
     
    Hi,

    I am currently reviewing some account reconciliations from an acquired company and noticed a liability on the books for a working capital adjustment for a prior acquisition.

    Has anyone had some experience with what a working capital adjustment is, what the purpose of it is, when they should clear from the balance sheet, etc?

    Thanks in advance for your help.

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