Pooling-of-interest method

It says that this method of accounting has been eliminated by IFRS and U.S. GAAP. does anyone know if the CFA Institute is still going to test us on this, in other words is this fair game?




As analyst you would deal with stale Fin stmts which might have been treated with Pooling. So…

An analyst should be aware of the pooling method because transactions done before 2001 may still be reported under that method --Schweser

You should know the loop holes of Pooling method. Atleast one I know of it is, Managers preferred this method because they report book value on the consolidate balance sheet (when companies merge), instead of fair value. So Earnings are increased.