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Q: What is the difference between purchase and pooling of interest and purchase method?
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Difference between pooling of risk in shortterm and longterm insurance?

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What is the difference between purchase and pooling accounting methods?

1. In case of Pooling Accounting new balance sheet of the combined company is created whereas in case of Purchase Accounting no new balance sheet is prepared. Thepurchasing company adds the assets of the acquired company to its balance sheetusing a fair market value.2. In case of Pooling Accounting it is basically the merging of two companies whereas incase of Purchase Accounting the acquired company is known as investment.3. In case of Pooling Accounting 'who is buying whom' is not clearly stated whereas incase of Purchase Accounting 'who is buying whom' is clearly stated.4. In case of Pooling Accounting it didnot record the price the acquiring company has topay for the acquisition whereas in case of Purchase Accounting it is valued using thefair market value.Answer by,Mr. Shabbir Alam


Different between purchase methods and pooling of interest method?

ItemPURCHASE METHODPOOLING OF INTERESTS METHODBook ValueTypically higher than pooling method.Typically lower than purchase method, as no goodwill asset is created.Earnings TrendTypically lower than the pooling method because pre-acquisition income statements are not combined.Typically higher than purchase method because income statements are combined retroactively.Sales TrendTypically distorts growth perception of the acquiring company, as much of its sales growth can be attributed to the acquisition.Typically more accurate than the purchase method, as income statements are combined retroactively.Earnings Per ShareTypically lower than the pooling method.Typically higher than the purchase method, as the income statement is combined for the entire reporting period, rather than as of the acquisition date.ROA & ROETypically lower.Typically higher.


Types of purchase method?

What is the type of purchase method? And I want to know about what different between purchase method and pooling method?installment plans: People began to buy expensive goods using installment plan credit during the 1920s.


What is pooling on interest methods?

is the accounting method, where balance sheet of daughter in book value is assumed with the mother


What are the accounting journal entries to record an acquisition?

I would like to know how accounting journal entries would differ on acquisition in compliance with IAS a) under pooling interest method b) under purchase mehod Appreciate this is explained in detailed numbers for acquiree & acquirer.


What is pooling substation?

The Substation which comes power from the power plant know as pooling substation.


What was a common activity of the grange?

pooling resources to buy equipment pooling resources to buy equipment


What is is blood pooling?

blood pooling is when the circulation of blood is minimal or non-existant in a part of the body.


What is the meaning of manpower pooling?

Pooling regards to putting together and aggregation of capital, objects and human resources. Similarly manpower pooling is the assembly of human labor/resources towards an objective.


What are the most common causes that cause of pooling blood?

Long periods of reclining can cause pooling of blood in dependent areas. Vasovagal reactions also cause pooling of blood.


What is the definiton of blood-pooling?

blood pooling is when the circulation of blood is minimal or non-existant in a part of the body.