What is pooling of interests and when can it be used?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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What is pooling of interests and when can it be used?

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Pooling of interest is an accounting method by which the consolidated entry of assets and liabilities of merged entity has been shown. It is different from acquisition method. Pooling interest method takes into consideration balance of revenue reserve instead of acquisition method where the reserve of the acquiree is not consider in consolidation of assets and liability.

 

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