alleryStart learning →Which business combination method has been disallowed under US GAAP since 2001?
APurchase method
BPooling-of-interests
CEquity accounting
DCost accounting
Answer & Solution
Correct answer: B. Pooling-of-interests
FAS 141 stopped the pooling-of-interests method, which combined book values without recording the price paid.
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Related questions
Goodwill can be recognised only through what?Goodwill in consolidated statements is treated as what type of asset?Acquirer pays Rs 60,000 for 100% of net assets with fair value Rs 40,000. Goodwill equals:A buys 100% of B for Rs 20 lakh. B's identifiable net assets at fair value are Rs 9 lakh. Goodwill arises when the price paid for a company exceeds what?A negative goodwill result on acquisition is recognised as what?Consideration transferred in a business combination is measured at:After acquisition, NCI is updated for its share of the subsidiary's: