Briner, Russell F.; Fulkerson, Cheryl Linthicum
March 2001
Multinational Business Review (St. Louis University);Spring2001, Vol. 9 Issue 1, p9
Academic Journal
The value of international cross-border merger and acquisition activity rose by 47 percent from 1998 to 1999, up from US $541 billion to a record US $798 billion. United States' Generally Accepted Accounting Principles currently permit two mutually exclusive alternatives in accounting for business combinations. The first is purchase accounting. The second, pooling of interests, is the subject of proposed elimination. In this manuscript, the purchase and pooling methods are illustrated. Further, the potential impacts of the likely elimination of the pooling alternative are discussed, both in terms of standard setting implications and in terms of potential impacts on merger and acquisition activity.


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