According to GAAP, which of the following is true with respect to the pooling of interest method of accounting for business combinations?
A) It was the only method used prior to 2002.
B) It must be used for all new acquisitions.
C) GAAP allowed its use prior to 2002.
D) It, or the acquisition method, may be used at the acquirer's discretion.
E) GAAP requires it to be used instead of the acquisition method for business combinations for which $50 billion or more in consideration is transferred.

Question

Quizplus · Accepted Answer

The pooling of interest method was allowed under GAAP prior to 2002, after which it was replaced by the acquisition method.

According to GAAP, Which of the Following Is True with Respect