Definitions for "pooling of interests"
One method of accounting for a company merger, in which the balance sheets of...
An accounting method used in the combining of companies simply by adding them together item by item, resulting in a tax-free transaction.
Method of accounting for mergers, in which the financial statements of the companies are combined at their Book Values and Goodwill is not created. Certain technical requirements must be complied with to permit pooling. The alternative is the Purchase Accounting method. A recent pronouncement by FASB is likely to eliminate this type of accounting.