pooling of interest Antonyms
No Synonyms and anytonyms found
Meaning of pooling of interest
pooling of interest (n)
an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free
pooling of interest Sentence Examples
- The pooling of interest method of accounting combines the assets and liabilities of different companies as if they had been operating as a single entity from inception.
- The pooling of interest method is used when there is a combination of two or more businesses that are similar in nature and that continue to operate as a single entity.
- Under the pooling of interest method, the acquiring company's assets and liabilities are combined with the target company's assets and liabilities at their book values.
- No goodwill is recorded under the pooling of interest method, as the combination is viewed as a continuation of the existing entities.
- The pooling of interest method was commonly used before the adoption of International Financial Reporting Standards (IFRS).
- IFRS prohibits the use of the pooling of interest method, requiring all business combinations to be accounted for using the purchase method.
- In the purchase method, goodwill is recognized to reflect the excess of the purchase price over the fair value of the acquired assets and liabilities.
- The pooling of interest method is advantageous because it does not result in the recognition of goodwill, which can be dilutive to earnings per share.
- The pooling of interest method is more likely to be used when the combination is seen as a merger of equals, rather than a takeover.
- The pooling of interest method can be used to combine two or more companies that are in the same industry or that have similar operations.
FAQs About the word pooling of interest
an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free
No synonyms found.
No antonyms found.
The pooling of interest method of accounting combines the assets and liabilities of different companies as if they had been operating as a single entity from inception.
The pooling of interest method is used when there is a combination of two or more businesses that are similar in nature and that continue to operate as a single entity.
Under the pooling of interest method, the acquiring company's assets and liabilities are combined with the target company's assets and liabilities at their book values.
No goodwill is recorded under the pooling of interest method, as the combination is viewed as a continuation of the existing entities.
