Pooling Of Interest (Noun)
Meaning
An accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The pooling of interest method was used in the merger between the two companies, resulting in a significant tax savings.
- This accounting method involves a detailed adding of balance sheets item by item, making the pooling of interest a complex process.
- The decision to use the pooling of interest method allowed the merger to be tax-free, a major benefit for both companies involved.
- To facilitate the merger, the companies decided to use the pooling of interest method to combine their balance sheets.
- The use of the pooling of interest method in the merger allowed the combined company to preserve the financial history of both individual companies.