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Recent accounting changes in the US eliminated the pooling-of-interests method, allowing only the purchase method for mergers and acquisitions. True?

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/12/14
Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

I didn't know this. Thank you for sharing your answer Sir.

Deleted user
by Deleted user

The answer is  TRUE

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

True.

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Yes, this is real

Ibrahim Hussein Mayaleh
by Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

I guess it is true

hossam azzam
by hossam azzam , Fast food restaurant,s manager. , alexandria-egypt

Yes. it,s true for sure

Mohammad Mohammad Ahmed El-Safty
by Mohammad Mohammad Ahmed El-Safty , مشرف تدريب وتطوير , شركة ميداس للتجارة العامة والمقاولات

Don't Have idea> Thanks for the invitation and thanks for all for sharing your answers

LABIB KOOLI
by LABIB KOOLI , Director of the Sectoral Center for Training in Hotel Technologies at Southern Hammamet , Tunisian Vocational Training Agency (ATFP)

Mergers between two companies imply that a stronger company is taking over a weaker one. This further implies that efficiency will be increased, since the well-run firm is taking over the assets of a poorly run firm. However, in2000, rules changed in these mergers that might harm the economic benefits of these implications. The U.S. government banned the pooling method of mergers and insisted only on purchase mergers, at least under specific circumstances.

This basically because the pooling method ignores goodwill totally.

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

Yes true.

ahmed alyahiri
by ahmed alyahiri , محامي , مكتب المحامي عبدالرحمن الأهدل للمحاماه و الإستشارات القانونية

true

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Yes. The statement is true.

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