The National Directory of Certified Public Accountants

Ask A CPA - Buying & Selling a Business

In A Merger , What Is The Pooling Of Interests Accounting Method ?

Pooling of interests is 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 2 entities have always been a single entity.

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