The Future of Accounting for Business Combinations
This paper explores the properties of pooling of interests (merger) accounting and purchase (acquisition) accounting as currently practised. It also compares these methods with variants of them that involve a greater use of fair values, the extent of valuation on a fair value basis and the treatment of different accounting methods. In particular, a greater use of fair values would reduce significantly the difference between the purchase and pooling methods and might also improve the extent to which the financial accounts reflect the economic reality of the business combination. However, the most consistent method of accounting for business combination, which would provide comparability across the full range of types of combination, is "fresh start" accounting which incorporates the recognition of all goodwill (and previously unrecognised intangible assets) in the combined group.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||Oct 2000|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.econ.cam.ac.uk/index.htm|
When requesting a correction, please mention this item's handle: RePEc:cam:camafp:00-af45. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Howard Cobb)
If references are entirely missing, you can add them using this form.