POOLING OF INTEREST METHOD Definition

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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.

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MATERIAL is information important enough to change an investor's decision. Insignificant information has no effect on decisions, so there is no need to report it.

IRD, dependent upon usage, can mean Interest Rate Derivatives (finance), Inland Revenue Department (New Zealands tax revenue collection department), or Interest Rate Differential.

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