The first proposal, Not-for-Profit Organizations: Mergers and Acquisitions, eliminates the use of the pooling-of-interests
method of accounting by not-for-profit organizations and requires the acquisition method for all mergers and acquisitions by a not-for-profit organization.
In conjunction with its issuance of IFRS 3, the IASB also revised international accounting standards (IAS) 36, Impairment of Assets, and 38, Intangible Assets; together they require, among other things, that all business combinations within the scope of IFRS 3 be accounted for using the purchase method and that the pooling-of-interests
method no longer be used.
Also, 82 percent of the respondents indicated that the elimination of pooling-of-interests
accounting will not impact their overall M&A activity, but that the new standards add complexity to structuring deals and the valuation of intangible assets.
Nasdaq: AWIN), today announced operating results for the twelve months ended July 31, 1998 pursuant to certain requirements for pooling-of-interests
accounting for business combinations.
Currently, there are two acceptable methods of accounting for business combinations -- the purchase method and the pooling-of-interests
Statement 141, Petrone said, eliminated the pooling-of-interests
method of accounting and supersedes Opinion 16 in its entirety, though it carries through that opinion's guidance on the purchase method of accounting.
The statement requires use of the purchase method of accounting for all business combinations initiated after June 30, 2001, thereby eliminating use of the pooling-of-interests
The United States is perhaps one of the last countries in the world to still permit pooling-of-interests
Accounting" to disclose consolidated earnings for a thirty day period following an acquisition under the pooling-of-interests
accounting method, Provident Financial Group, Inc.
One of the key conclusions reached in that paper was that the pooling-of-interests
method of accounting should be eliminated and that the purchase method be used to account for all business combinations.
Now, industries such as technology and banking, where pooling-of-interests
acquisitions have dominated in recent years, will be ripe for a new wave of acquisitions using cash.
1999 proposed statement, Business Combinations and Intangible Assets, the Financial Accounting Standards Board has tentatively decided to eliminate the pooling-of-interests
method of accounting for business combinations.