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Finance Dictionary and Glossary of Investment Terms
Pooling of interests
Definition 1.
An accounting method for reporting acquisitions accomplished through the use of equity. The combined assets of the merged entity are consolidated using book value, as opposed to the purchase method, which uses market value. The merging entities' financial results are combined as though the two entities have always been a single entity.
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Definition 2.
One method of accounting for a company merger, in which the balance sheets of the two companies are combined line by line without a tax impact. Only allowed under certain circumstances.
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Definition 3.
An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together.
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