POOLING OF INTEREST METHOD is an accounting method for reporting acquisitions accomplished through the use of equity. The combined assets of the merged entity are consolidated using book value, as opposed to the PURCHASE METHOD, which uses market value. The merging entities` financial results are combined as though the two entities have always been a single entity. See POOLING-OF-INTERESTS.
BOND RATING is a measure of credit quality ranging from AAA to D by bond rating services such as Moody's, Standard & Poor's or Fitch's. Bonds rated BB+ or lower by Standard & Poor's or Ba1 or lower by Moody's are not investment grade.
CAPITAL RESERVE is a fund set aside for specific purposes, thereby cannot be distributed for other uses. See also REVENUE RESERVE.
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