Purchase acquisition accounting is required by law for most business combinations, especially in public companies. The method is required by FASB and IASB.

Hawkins, David F., and F. Asis Martinez Jerez. "Accounting for Business Combinations: Acquisition Method." Harvard Business School Background Note 108-067, February 2008. (Revised November 2010 ...

Previous research suggests that certain benefits may derive from the method used to account for business combinations and may affect how bidding firms structure and classify corporate acquisitions.