1.83-3(j) (sales that may give rise to suits under Section 16(b) of the Securities Exchange Act of 1934) and 1.83-3(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.
At the same time, FASB also issued SFAS 141, Business Combinations, which eliminated the pooling-of-interests
method of accounting for a business combination, a method that does not give rise to goodwill.
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.
Most deals were stock-for-stock transactions, accounted for using pooling-of-interests
method would be prohibited.
141 (FAS 141) prohibits the popular pooling-of-interests
(poolings) method of accounting for business combinations.
Use of the pooling-of-interests
method is no longer permitted.
NEW YORK-The Financial Accounting Standards Board's (FASB) recent decision to eliminate the pooling-of-interests
method of accounting for business acquisitions and replace it with the purchase method should not impact valuations in the long term, according to analysts.
Results for have been restated to reflect the pooling-of-interests
accounting treatment applied to the company's July 1999 merger with C.D.
As for Internet Image, Intraware intends to pay $37m in stock for the company and to account for the transaction as a pooling-of-interests
. The entire $48m purchase is a drop in the ocean to Orinda, California-based Intraware.
It will be accounted for as a pooling-of-interests
The most significant feature of APB Opinion 16 was arguably its elimination of the purchase versus pooling-of-interests