…the more i realize i dont know.
im doing a problem in a mock… pooling method purchase method. im assuimg there are relarted to the equity, accuisition methods… but dont remember seeing either phrases before.
Pooling-of-interest method (US GAAP) = Uniting-of-interest method (IFRS)
Under both of them BS and IS are restated as if the two companies have always operated as single entity. Only historical values are used.
Purchase method - the new company is recorded through FV of net assets.
All of the abovementioned methods are no longer allowed, I don’t know why they are part of the curriculum.
PS: We are all in the same boat, the material is endless.
it really irritates me that they would ask a question on this topic in the mock when these methods are pre-2004 or something like that.
they are in curriculum I believe bc it states certain companies that used to use the methods may still have the effects of those methods left on their financial statements. I agree it’s just too much info though and overload. like sure add the info in the curriculum but please don’t test us on the fundamentals of either method, given they’re obsolete, when there are already like 57 different methods to know within the 1 ***-**** reading.
im pushing forward in the home stretch, but im finding myself lacking a lot here.
i dont know wheather its better use of time to go through the moc k questions in a timed matter and have more time to go to the next or to try to spend the time to figure it out hoping its retained better.
i would rather stuff show up on the mocks and i see them then not have seen them on day of test…
yeah… 300 hours… sure… right 
Gebula - Purchase method is not allowed under US GAAP now? I think ASC 805 - Accounting for business combinations is all about reporting at fair values…
Lol, this.
That’s the reason why I skipped it altogether. Not gonna study accounting treatments used 15 years ago.
Purchase Method or Acquisition Method for Business Combination still prevails as per US GAAP. ASC 805.
I am not so familiar with US GAAP as with IFRS but hasn’t the acquisition method replaced the purchase method?
Its all same. Both US GAAP and IFRS have moved on to Fair Value reporting for Business Combinations… whether you name Acquisition or Purchase Price Allocation. Pooling of interest is dead now.
I agree that the acquisition method is the heir of the purchase method for US GAAP but I believe that for the exam they are distinguished:
“The acquisition method developed by the IASB and FASB replaces the purchase method, and substantially reduces any differences between IFRS and US GAAP for business combinations.”
Agree…just the name change…for exam purposes, assume purchase price=acquisition method…as we would not require to interpret the accounting changes. Treatment of Acquisition under Business Combination remains same.