Definition for : Pooling of interest method

This method has now been abolished by both the U.S. authorities and IASB. It allowed the Assets and Liabilities of the newly acquired company to be included in the group's accounts at their Book value without any Goodwill being recorded. The difference between the price paid for the shares and their Book value was deducted from the acquiror's Equity.
(See Chapters 6 and 7 of the Vernimmen)
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