Historically,much of the controversy concerning accounting requirements for business combinations involved the ________ method.
A)purchase
B)pooling of interests
C)equity
D)acquisition

Question

Quizplus · Accepted Answer

The controversy surrounding accounting for business combinations involved the pooling of interests method, which allowed companies to combine their financial statements without recording assets and liabilities at fair value. This method was criticized for not providing users with useful information and for allowing companies to manipulate earnings through various accounting techniques.

Historically,much of the Controversy Concerning Accounting Requirements for Business Combinations