Since 2001, which method of accounting for a business combination is required under U.S.GAAP?
A)Pooling of interest method
B)Purchase method
C)Both purchase and pooling of interest methods are allowed
D)Purchase is required for transnational combinations, but pooling is allowed for domestic combinations.

Question

Quizplus · Accepted Answer

Since 2001, the purchase method of accounting for business combinations has been required under U.S. GAAP. The pooling-of-interests method is no longer allowed.

Since 2001, Which Method of Accounting for a Business Combination