pooling of interest

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  • noun

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an accounting method used in the merging of companies

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Some analysts, including Bobby Reagan of Reagan & Associates, doubt whether the looming end of the pooling of interest is sparking acquisitions.
These statements involve risks and uncertainties, including without limitation, the ability to complete the transaction for the acquisition of Wyckoff, the ability to use pooling of interest accounting for the transaction and the ability to integrate and operate the manufacturing and development facilities of Wyckoff efficiently and achieve operating synergies resulting in accretive financial results.
As things now stand in Canada (section 1580 of the CICA Manual) and internationally (IASC International Accounting Standard 22), the pooling of interests method (also called the merger method) must be used to account for those rare business combinations in which it is impossible to determine which of the parties is the acquirer.
FASB gave several reasons for proposing the elimination of the pooling of interests method, including:
If a company completes a pooling of interests, it must rescind existing stock repurchase plans and forgo stock repurchases for up to two years.
The pooling of interests accounting method enables companies to write-off purchased research and development, thus lessen the effect of goodwill charges on the usually small or negative earnings.
48 in 1957 accelerated the pooling of interests method by providing greater endorsement than ever before.
On the business combinations/ pooling of interests issue, Lucas reiterated that the FASB began re-deliberations last March and is continuing to explore related goodwill issues, as well as a non-amortization approach that would include an asset impairment test.
FASB unanimously voted that day to eliminate pooling of interests as an acceptable method of accounting for business combinations.
The use of pooling of interests is very important in some mergers," said Crooch, "and I have even had clients tell me, `If we can't account for this merger as a pooling of interests, we're not going to do it at all.
Both companies are focused and dedicated to providing the highest-quality services to physicians and patients, and in coming days we plan to explore further pooling of interests.
The comment period on the FASB proposal to eliminate pooling of interests in favor of purchase accounting for all business combinations just closed.
Except in the most unusual circumstances, it seems inconceivable a true pooling of interests could occur when one merger partner is 5 to 20 times larger than the other.
In fiscal 2000, the Company treated these acquisitions as a combination of entities under common control accounted for in a manner similar to a pooling of interests.
to acquire Quaker in a pooling of interests transaction.