83-3(k) (transfer restrictions under the pooling-of-interests accounting
rule), a substantial risk of forfeiture may be established only through a service condition or a condition related to the purpose of the transfer; (2) in determining whether a substantial risk of forfeiture exists based on a condition related to the purpose of the transfer, both the likelihood that the forfeiture event will occur and the likelihood that the forfeiture will be enforced must be considered; and (3) except as specifically provided in Sec.
Most deals were stock-for-stock transactions, accounted for using pooling-of-interests accounting
The first concerns the so-called elimination of pooling-of-interests accounting
Beyond the revised treatment of goodwill, however, the FASB held fast in the face of vigorous opposition to eliminating the popular pooling-of-interests accounting
And, since differences in the form of consideration exchanged appear to be the major rationalization supporting pooling-of-interests accounting
, one can conclude that pooling accounting is of questionable validity.
The transaction was accounted for by the pooling-of-interests accounting
method and, therefore, all prior year financial information has been restated to include Shoreline as if it had always been a subsidiary of the Corporation.
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.
It is interesting that all of the large mergers were structured to achieve pooling-of-interests accounting
The transaction will be financed through an exchange of stock under the pooling-of-interests accounting
treatment that will preserve balance sheet integrity.
The United States is perhaps one of the last countries in the world to still permit pooling-of-interests accounting
A true merger -- where ownership interests are continued, no change in control of the company's assets or liabilities transpires, no culmination of an earnings process occurs, and risks and rewards of net assets obtained are similar to those given up -- warrants pooling-of-interests accounting
As it happened, I had considered pooling-of-interests accounting
most intimately in Barron's, October 8, 1990.