Mergers and acquisitions among brokers and agencies are heating up as time runs out to take advantage of the soon-to-expire accounting method of pooling of interest
, some industry analysts say.
Given that both Eastern and Plymouth are mutual holding companies, the transaction will be accounted for as a pooling of interest
, so there will be technically no consideration paid or goodwill created.
However, contemplated actions by the Financial Accounting Standards Board to eliminate pooling of interest
accounting could have a chilling effect on the high-tech community.
On May 24, 2001, Americorp's pending merger with Mid-State Bancshares in Arroyo Grande was changed from a pooling of interest
transaction to a purchase.
Standard & Poor's expects the acquisition, treated as a pooling of interest
for accounting purposes, to substantially increase AIG's U.
Catalytica will purchase privately held Wyckoff in a stock-for-stock transaction intended to be accounted for using the pooling of interest
method of accounting.
Historically, two methods have been used to reflect these transactions -- the purchase method and the pooling of interests
method -- although under conditions that vary greatly from country to country.
19, 1976), the Financial Accounting Standards Board has issued Statements 141 and 142, doing away with pooling of interests
The purchase method (popular worldwide) and pooling of interests
method are the two methods used for recording business combinations.
96, Treasury Stock Acquisitions Following Consummation of a Business Combination Accounted for as a Pooling of Interests
Inc, making the most of what could be the final months of the pooling of interests
accounting method, has snapped up another company; this time buying Online Anywhere for $80m in Yahoo stock.
Washington Mutual's purchase relies on using a method known as pooling of interests
, in which two companies combine their assets and liabilities to avoid added expenses.