purchase and pooling: both not retrospective

purchase and pooling: both not retrospective, is it? . I’ve saw some question related show up on CFAI and schweser, but lost track of them…

What do you mean by retrospective? That only retrospective application that I recall is when in hyperinflationary economy using the AC method of currency translation under IFRS, you have to apply inflation rates retrospectively to the balance sheet. Otherwise purchase method marks everything to fair value, and pooling method keeps everything at book value

Purchase does not reinstate financial statements, but pooling does. I’m sure of purchase, but having second thoughts on pooling, as I confuse it with proprtionate consolidation. Final answer … pooling reinstates.

with pooling, prior period statements are restated - its as if the 2 companies were always one. with purchase, prior period statements are not changed.

Dreary and bobsters are correct. I have perhaps the worst mnemonic device for this - “purfanot.” PUrchase method - FAir value - does NOT restate