To qualify for a pooling of interests, which of the following criteria does not need to be met?
A) The acquiring corporation issues only common stock, with rights identical to its old outstanding voting stock, in exchange for substantially all of the other company's voting stock.
B) The acquired firm's stockholders do not maintain an ownership position in the surviving firm.
C) The combined entity does not intend to dispose of a significant portion of the assets of the combined companies within two years.
D) The combination is effected in a single transaction.

Question

Quizplus · Accepted Answer

All the other criteria need to be met to qualify for a pooling of interests. The acquiring corporation must issue only common stock with rights identical to its old outstanding voting stock, the combined entity cannot intend to dispose of a significant portion of the assets within two years, and the combination must be effected in a single transaction. However, the acquired firm's stockholders maintaining an ownership position in the surviving firm would disqualify the combination from being a pooling of interests.

To Qualify for a Pooling of Interests, Which of the Following