An advantage of pooling of interests accounting is that it provides superior quality information when compared to acquisition acounting

Question

Quizplus · Accepted Answer

Pooling of interests accounting often masks the true financial impact of a merger or acquisition by combining the financial statements of the merging companies without recognizing the premium paid over the book value of the acquired company, potentially leading to less transparent and lower quality financial information compared to acquisition accounting, which requires assets and liabilities to be recorded at fair market values.

An Advantage of Pooling of Interests Accounting Is That It