A pooling of interests treatment of a merger stated simply means that the financial statements of the two firms are combined with only some minor adjustments.

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In a pooling of interests treatment of a merger, the financial statements of the two firms are combined with only some minor adjustments, such as eliminating inter-company transactions and revaluing assets and liabilities to fair market value. This is done to reflect the transaction as if the two companies had always been one entity.

A Pooling of Interests Treatment of a Merger Stated Simply