pooling of interests

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Pooling of interests

An accounting method for reporting acquisitions accomplished through the use of equity. The combined assets of the merged entity are consolidated using book value, as opposed to the purchase method, which uses market value. The merging entities' financial results are combined as though the two entities have always been a single entity.

Pooling of Interests

A way to record a merger or acquisition where the assets and liabilities are added together and netted. The pooling of interests method does not create good will and therefore results in higher earnings for newly merged or acquired entity. The pooling of interest method contrasts with the purchase acquisition method.

pooling of interests

An accounting method for combining unchanged the assets, liabilities, and owners' equity of two firms after a merger or combination. Before being discontinued in 2001, pooling was a preferred method of accounting for mergers because it generally produced the highest earnings calculations for the surviving company. Compare purchase method.
References in periodicals archive ?
Those standards (SFAS 141 and 142) eliminated pooling of interests accounting and did away with amortization of goodwill, but required acquirers to appropriately allocate the purchase price to identifiable intangible assets.
PepsiCo said it does not expect to sell additional shares of its Capital Stock in order to achieve the pooling of interests accounting treatment.
Inc, making the most of what could be the final months of the pooling of interests accounting method, has snapped up another company; this time buying Online Anywhere for $80m in Yahoo stock.
As already implied, pooling of interests accounting is conceptually quite simple.
It was noted previously that pooling of interests accounting normally results in higher--and often much higher--earnings than when purchase accounting is used.
114] states that "(the) elimination of pooling of interests accounting results in comparability in accounting for business combinations.
The merger is expected to be based on pooling of interests accounting and the combined company will operate as ROI Corporation.
Certain statements in this release are forward-looking including statements relating to InfoCure's ability to achieve success through the addition of Datamedic's workforce, customer base and product set, to build on leading positions in ophthalmology, oncology, and other specialties through this business combination, to account for the transaction under pooling of interests accounting, to close the transaction in the quarter ending December 31, 1999, and to file with the Securities and Exchange Commission a registration statement on Form S-4 with respect to the shares to be issued by InfoCure in the transaction.
FASB intends to limit the use of pooling of interests accounting to mergers in which there is no clear acquirer and there is a mutual sharing of risks and benefits by the combining shareholders in the combined entity.
The repurchase of up to 100,000 shares generally represents the maximum number of shares that may be repurchased while preserving pooling of interests accounting treatment for that transaction, which closed effective March 5, 1999.
The transaction is also conditional on satisfying pooling of interests accounting requirements and on certain other conditions.
Nasdaq: DSLGF) for pooling of interests accounting treatment.