If 90% of a company's outstanding common shares are obtained in a business combination properly accounted for as a purchase, the acquisition of the remaining shares may be accounted for as a pooling of interests.

Question

Quizplus · Accepted Answer

In a business combination accounted for as a purchase (now referred to under US GAAP as an acquisition), subsequent acquisition of the remaining shares continues to be accounted for under the acquisition method. The pooling of interests method was eliminated for business combinations initiated after June 30, 2001, by the Financial Accounting Standards Board (FASB).

If 90% of a Company's Outstanding Common Shares Are Obtained