Pooling of interest method

This is the perfect example of why I sometimes hate this material…and Canadian GAAP (RIP), US GAAP, IFRS, Austrian tax law etc etc…cannot wait for it to unite to the same thing!!!

Anybody know if we actually need to know what the pooling of interest method is for the exam?

Also, what is the benefit of knowing an accounting theory from the past? Please tell me Schweser just forgot to take this out…please hahah

I think its fair game.

Not sure if the LOS explicitly mentions the pooling of interest method, but then again I’m not sure if it explicitly mentions proportionate consolidation or the equity method either.

What I took away from the pooling of interest method was 1) it is no longer valid, 2) firms were combined using book values only (no market values) and 3) that prior period operating results were restated as if the two firms were always combined.

I’m not going to beat myself up trying to learn another method, I’m hoping these points will suffice.

Sounds logical!

I will memorize what you wrote and move on…hopefully they are smart enough to test relevant material…